Value of out put and value added can be distinguished if we know: (1) the value of intermediate consumption (2) the value of net indirect taxes (3) the value of the sales (4) the value of consumption of fixed capital

Value of out put and value added can be distinguished if we know: (1) the value of intermediate consumption (2) the value of net indirect taxes (3) the value of the sales (4) the value of consumption of fixed capital
by

1 Answer

Answer :

(1) the value of intermediate consumption Explanation: Intermediate consumption is an accounting flow which consists of the total monetary value of goods and services consumed or used up as inputs in production by enterprises. including raw materials, services and various other operating expenses. Inter-mediate consumption (unlike fixed assets) is not normally classified in national accounts by type of good or service, because the accounts will show net out-put by sector of activity. Because this value must be subtracted from Gross Output to arrive at GDP, how it is exactly defined and estimated will importantly affect the size of the GDP estimate.
by
selected

Related questions

Value of out put and value added can be distinguished if we know: (1) the value of intermediate consumption (2) the value of net indirect taxes (3) the value of the sales (4) the value of consumption of fixed capital

Description : Value of out put and value added can be distinguished if we know: (1) the value of intermediate consumption (2) the value of net indirect taxes (3) the value of the sales (4) the value of consumption of fixed capital

Last Answer : the value of intermediate consumption 

Expenditure on advertisement and public relations by an enterprise is a part of its (1) consumption of fixed capital (2) final consumption expenditure (3) intermediate consumption (4) fixed capital

Description : Expenditure on advertisement and public relations by an enterprise is a part of its (1) consumption of fixed capital (2) final consumption expenditure (3) intermediate consumption (4) fixed capital

Last Answer :  intermediate consumption

What is the term in economics for the consumption of fixed capital? a) Investment b) Value added c) Production flow d) Depreciation

Description : What is the term in economics for the consumption of fixed capital? a) Investment b) Value added c) Production flow d) Depreciation

Last Answer : d) Depreciation

Payment of water charges by the farmers to the government represents - (1) intermediate consumption (2) final consumption (3) fixed investment (4) inventory investment

Description : Payment of water charges by the farmers to the government represents - (1) intermediate consumption (2) final consumption (3) fixed investment (4) inventory investment

Last Answer : (1) intermediate consumption Explanation: Intermediate consumption is an accounting concept which measures the value of the goods and services consumed as inputs by a process of production. It excludes fixed assets whose ... .g. bulk sugar) or completely used up (e.g. electric power, water, etc).

Payment of water charges by the farmers to the govern-ment represents (1) intermediate consumption (2) final consumption (3) fixed investment (4) inventory investment

Description : Payment of water charges by the farmers to the govern-ment represents (1) intermediate consumption (2) final consumption (3) fixed investment (4) inventory investment

Last Answer : intermediate consumption

GDP at factor cost exceeds GDP at market price (a) When the factor income from abroad is negative ; (b) When depreciation on fixed capital exceeds income in investment; (c) When direct tax exceeds indirect tax ; (d) When subsidies exceeds indirect taxes.

Description : GDP at factor cost exceeds GDP at market price (a) When the factor income from abroad is negative ; (b) When depreciation on fixed capital exceeds income in investment; (c) When direct tax exceeds indirect tax ; (d) When subsidies exceeds indirect taxes.

Last Answer : (d) When subsidies exceeds indirect taxes. 

What is Value Added Tax (VAT)? (1) A simple, transparent, easy to pay tax imposed on consumers (2) A new initiative taken by the Government to increase the tax-burden of high income groups (3) A single tax that replaces State taxes like, surcharge, turnover tax, etc. (4) A new tax to be imposed on the producers of capital goods

Description : What is Value Added Tax (VAT)? (1) A simple, transparent, easy to pay tax imposed on consumers (2) A new initiative taken by the Government to increase the tax-burden of high income groups (3) A ... like, surcharge, turnover tax, etc. (4) A new tax to be imposed on the producers of capital goods

Last Answer : (3) A single tax that replaces State taxes like, surcharge, turnover tax, etc. Explanation: A value added tax (VAT) is a form of consumption tax. A VAT is like a sales tax in that ... under the single tax system based primarily or exclusively on one tax, typically chosen for its special properties.

What is Value Added Tax (VAT) ? (1) A simple, transparent, easy to pay tax imposed on consumers (2) A new initiative taken by the Government to increase the tax-burden of high income groups (3) A single tax that replaces State taxes like, surcharge, turnover tax, etc. (4) A new tax to be imposed on the producers of capital goods

Description : What is Value Added Tax (VAT) ? (1) A simple, transparent, easy to pay tax imposed on consumers (2) A new initiative taken by the Government to increase the tax-burden of high income groups (3) A ... like, surcharge, turnover tax, etc. (4) A new tax to be imposed on the producers of capital goods 

Last Answer : A single tax that replaces State taxes like, surcharge, turnover tax, etc. 

Imputed gross rent of owner-occupied buildings is a part of - (1) capital formation (2) final consumption (3) intermediate consumption (4) consumer durable

Description : Imputed gross rent of owner-occupied buildings is a part of - (1) capital formation (2) final consumption (3) intermediate consumption (4) consumer durable

Last Answer : (2) final consumption Explanation: The figure of final private consumption expenditure includes the imputed gross rent of owner-occupied dwellings, consumption of own-account production and payment by ... of production and hence an income and is also a part of final consumption expenditure.

Imputed gross rent of owneroccupied buildings is a part of (1) capital formation (2) final consumption (3) intermediate consumption (4) consumer durable

Description : Imputed gross rent of owneroccupied buildings is a part of (1) capital formation (2) final consumption (3) intermediate consumption (4) consumer durable

Last Answer : final consumption

Personal taxes in India best illustrates a (a) Proportional tax system ; (b) Progressive tax system (c) Indirect tax system ; (d) Value added tax system

Description : Personal taxes in India best illustrates a (a) Proportional tax system ; (b) Progressive tax system (c) Indirect tax system ; (d) Value added tax system

Last Answer : (b) Progressive tax system 

NDP does not include (a) Payments made for income taxes ; (b) Depreciation allowances ; (c) Undistributed profits; (d) The value added from intermediate goods.

Description : NDP does not include (a) Payments made for income taxes ; (b) Depreciation allowances ; (c) Undistributed profits; (d) The value added from intermediate goods.

Last Answer : (b) Depreciation allowances ;

Which of the following taxes are levied and collected by the centre but their net proceeds are wholly transferred to states? (1) Expenditure Tax and Gift Tax (2) Additional Duties of Excise in lieu of Sales Tax (3) Stamps and Registration (4) Taxes on Advertisement

Description : Which of the following taxes are levied and collected by the centre but their net proceeds are wholly transferred to states? (1) Expenditure Tax and Gift Tax (2) Additional Duties of Excise in lieu of Sales Tax (3) Stamps and Registration (4) Taxes on Advertisement

Last Answer : (4) Taxes on Advertisement Explanation: Apart from taxes levied and collected by the States, the Constitution has provided for the revenues for certain taxes on the Union List to be allotted ... exchanges and future markets; and Taxes on sale and purchase of newspapers and advertisements therein.

Which of the following taxes are levied and collected by the centre but their net proceeds are wholly transferred to states ? (1) Expenditure Tax and Gift Tax (2) Additional Duties of Excise in lieu of Sales Tax (3) Stamps and Registration (4) Taxes on Advertisement

Description : Which of the following taxes are levied and collected by the centre but their net proceeds are wholly transferred to states ? (1) Expenditure Tax and Gift Tax (2) Additional Duties of Excise in lieu of Sales Tax (3) Stamps and Registration (4) Taxes on Advertisement

Last Answer : Taxes on Advertisement

If net national products is given at Market Prices , we `"____"` indirect taxes and `"________"` subsidies to get National income of the economy.

Description : If net national products is given at Market Prices , we `"____"` indirect taxes and `"________"` subsidies to get National income of the economy.

Last Answer : If net national products is given at Market Prices , we `"____"` indirect taxes and `"________"` ... Divide C. Subtract , Add D. Subtract , Divide

Which of the following statement is true? (a) Value added = total sales + closing stock of finished goods – opening stock of finished goods – total expenditure on raw material – intermediate goods (b) Value added = total sales + closing stock of finished goods and semi finished goods – total expenditure on raw material – intermediate goods (c) Value added = total sales + closing stock of finished goods and semi-finished goods-opening stock of finished goods and semi finished goods-total expenditure on raw material (d) Value added = total sales + closing stock of finished goods and semi finished goods – opening stock of finished goods and semi finished goods – total expenditure on raw material – intermediate goods.

Description : Which of the following statement is true? (a) Value added = total sales + closing stock of finished goods - opening stock of finished goods - total expenditure on raw material - intermediate ... stock of finished goods and semi finished goods - total expenditure on raw material - intermediate goods.

Last Answer : (d) Value added = total sales + closing stock of finished goods and semi finished goods – opening stock of finished goods and semi finished goods – total expenditure on raw material – intermediate goods.

Value-added means value of - (1) output at factor cost (2) output at market prices (3) goods and services less depreciation (4) goods and services less cost of intermediate goods and services

Description : Value-added means value of - (1) output at factor cost (2) output at market prices (3) goods and services less depreciation (4) goods and services less cost of intermediate goods and services

Last Answer : (4) goods and services less cost of intermediate goods and services Explanation: Value added is an economic term to express the difference between the value of goods and the cost of materials or ... services by others. So it is of goods and services less cost of intermediate goods and services.

Intermediate goods are not included to calculate the final output because: a) they do not have value b) they have unknown value c) their value is included in final goods so they are not added to avoid the problem of double counting d) none of the above

Description : Intermediate goods are not included to calculate the final output because: a) they do not have value b) they have unknown value c) their value is included in final goods so they are not added to avoid the problem of double counting d) none of the above

Last Answer : : c) their value is included in final goods so they are not added to avoid the problem of double counting

Value-added means value of (1) output at factor cost (2) output at market prices (3) goods and services less depreciation (4) goods and services less cost of intermediate goods and services

Description : Value-added means value of (1) output at factor cost (2) output at market prices (3) goods and services less depreciation (4) goods and services less cost of intermediate goods and services

Last Answer : goods and services less cost of intermediate goods and services

If economic subsidies are added to and indirect taxes are subtracted from the national income at market prices , then it will be equal to :

Description : If economic subsidies are added to and indirect taxes are subtracted from the national income at market prices , then it will be equal to :

Last Answer : If economic subsidies are added to and indirect taxes are subtracted from the national income at ... prices D. Gross domestic product at factor cost

From the following information , compute `GNP_(MP) . GDP_(FC)` = ₹ 3, 000 . Net factor income to abroad = ₹ 200 . Indirect Taxes = ₹ 420 , Subsidies =

Description : From the following information , compute `GNP_(MP) . GDP_(FC)` = ₹ 3, 000 . Net factor income to abroad = ₹ 200 . Indirect Taxes = ₹ 420 , Subsidies =

Last Answer : From the following information , compute `GNP_(MP) . GDP_(FC)` = ₹ 3, 000 . Net factor income to abroad = ₹ ... A. 3380 B. 2, 980 C. 3020 D. 2, 620

The difference between Gross National Product (GNP) and Gross Domestic Product GDP) is (a) Excess of subsidies over indirect taxes ; (b) Depreciation ; (c) Net foreign income from abroad (d) Excess of indirect taxes over subsidies

Description : The difference between Gross National Product (GNP) and Gross Domestic Product GDP) is (a) Excess of subsidies over indirect taxes ; (b) Depreciation ; (c) Net foreign income from abroad (d) Excess of indirect taxes over subsidies

Last Answer :  (c) Net foreign income from abroad

Net factor income from abroad is equal to (a) NNP at market price – NDP at market price ; (b) NDP at market prices – Indirect taxes + Subsidies ; (c) NDP at factor cost + Depreciation ; (d) NNP at market prices + Depreciation

Description : Net factor income from abroad is equal to (a) NNP at market price – NDP at market price ; (b) NDP at market prices – Indirect taxes + Subsidies ; (c) NDP at factor cost + Depreciation ; (d) NNP at market prices + Depreciation

Last Answer : (a) NNP at market price – NDP at market price ;

Pick out the wrong statement. (A) The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment (B) Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost (C) Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital investment (D) In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)

Description : Pick out the wrong statement. (A) The annual depreciation rate for machinery and equipments in a chemical process plant is about 10% of the fixed capital investment (B) Annual depreciation rate ... chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)

Last Answer : (D) In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)

Are indirect business taxes included in the measurement of GDP?

Description : Are indirect business taxes included in the measurement of GDP?

Last Answer : I'm pretty sure they aren't included at all, just like Government spending does not include benefit payments for GDP purposes. GDP is all about what an economy produces; things like taxes and food stamps ... what a country is producing. I'm still not 100% on that though, so you should verify it.

Indirect taxes by nature are - (1) degressive (2) regressive (3) progressive (4) proportional

Description : Indirect taxes by nature are - (1) degressive (2) regressive (3) progressive (4) proportional

Last Answer : (2) regressive Explanation: An indirect tax is one in which the burden can be shifted to others. The tax payer is not the tax bearer. The impact and incidence of indirect taxes are on ... nature. Therefore, individuals would not be de-motivated to work and to save, which may increase investment.

Personal disposable income is - (1) always equal to personal income (2) always more than personal income (3) equal to personal income minus indirect taxes (4) equal to personal income minus direct taxes

Description : Personal disposable income is - (1) always equal to personal income (2) always more than personal income (3) equal to personal income minus indirect taxes (4) equal to personal income minus direct taxes

Last Answer : (4) equal to personal income minus direct taxes Explanation: Disposable income is total personal income minus personal current taxes. In national accounts definitions, personal income, minus personal ... of personal (or, private) consumption expenditure) yields personal (or, private) savings.

Personal disposable income is : (1) always equal to personal income. (2) always more than personal income. (3) equal to personal income minus direct taxes paid by household. (4) equal to personal income minus indirect taxes.

Description : Personal disposable income is : (1) always equal to personal income. (2) always more than personal income. (3) equal to personal income minus direct taxes paid by household. (4) equal to personal income minus indirect taxes.

Last Answer : (3) equal to personal income minus direct taxes paid by household. Explanation: Disposable income is total personal income minus personal current taxes. In national accounts definitions, personal ... category of personal (or, private) consumption expenditure) yields personal (or, private) savings

Indirect taxes by nature are (1) degressive (2) regressive (3) progressive (4) proportional

Description : Indirect taxes by nature are (1) degressive (2) regressive (3) progressive (4) proportional 

Last Answer : regressive

Personal disposable income is : (1) always equal to personal income. (2) always more than personal income. (3) equal to personal income minus direct taxes paid by household. (4) equal to personal income minus indirect taxes.

Description : Personal disposable income is : (1) always equal to personal income. (2) always more than personal income. (3) equal to personal income minus direct taxes paid by household. (4) equal to personal income minus indirect taxes. 

Last Answer : equal to personal income minus direct taxes paid by household. 

Goods which are meant either for consumption or for investment are called - (1) Final goods (2) Giffen goods (3) Inferior goods (4) Intermediate goods

Description : Goods which are meant either for consumption or for investment are called - (1) Final goods (2) Giffen goods (3) Inferior goods (4) Intermediate goods

Last Answer : (1) Final goods Explanation: All goods which are meant either (i) for consumption by consumers or (ii) for investment by firms are called final goods. They are finished goods, meant for final ... stages of production. Cars, television sets, cloth, food, machinery, equipments etc. are final goods.

Steel sheets used in the production of furnitures is an example of (1) an intermediate good (2) a final good (3) an investment good (4) a consumption good

Description : Steel sheets used in the production of furnitures is an example of (1) an intermediate good (2) a final good (3) an investment good (4) a consumption good

Last Answer : (1) an intermediate good Explanation: Intermediate goods are semifinished products are goods that are used as inputs in the production of oilier goods including final goods. It comprises material or ... , intermediate goods either become part of the final product, or are changed beyond recognition.

Steel sheets used in the production of furnitures is an example of (1) an intermediate good (2) a final good (3) an investment good (4) a consumption good

Description : Steel sheets used in the production of furnitures is an example of (1) an intermediate good (2) a final good (3) an investment good (4) a consumption good

Last Answer : an intermediate good

Goods which are meant either for consumption or for investment are called (1) Final goods (2) Giffen goods (3) Inferior goods (4) Intermediate goods

Description : Goods which are meant either for consumption or for investment are called (1) Final goods (2) Giffen goods (3) Inferior goods (4) Intermediate goods

Last Answer : Final goods

Which of these items are excluded in the computation of National Income under value added method? (a) Own acquired fixed assets by the Government enterprises, Govt. and household; (b) Production for self-consumption ; (c) Imputed rent for own occupied house ; (d) All the three

Description : Which of these items are excluded in the computation of National Income under value added method? (a) Own acquired fixed assets by the Government enterprises, Govt. and household; (b) Production for self-consumption ; (c) Imputed rent for own occupied house ; (d) All the three

Last Answer : (d) All the three

Which one of the following is NOT an example of indirect tax? (1) Sales tax (2) Excise duty (3) Customs duty (4) Expenditure tax

Description : Which one of the following is NOT an example of indirect tax? (1) Sales tax (2) Excise duty (3) Customs duty (4) Expenditure tax

Last Answer : (4) Expenditure tax Explanation: Expenditure tax is a taxation plan that replaces the income tax (a direct tax). Instead of applying a tax based on the income earned, tax is allocated based on the ... a consumption tax. The major benefit for this type of tax scheme is the removal of double taxation.

Which one of the following is NOT an example of indirect tax? (1) Sales tax (2) Excise duty (3) Customs duty (4) Expenditure tax

Description : Which one of the following is NOT an example of indirect tax? (1) Sales tax (2) Excise duty (3) Customs duty (4) Expenditure tax

Last Answer : Expenditure tax

Forced Savings refer to - (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees

Description : Forced Savings refer to - (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees

Last Answer : (1) Reduction of consumption consequent to a rise in prices Explanation: Forced saving is an economic situation in which consumers spend less than their disposable income, not because they want to ... free economy, this situation would normally result in increase in prices and inflow of more goods.

Forced Savings refer to (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees

Description : Forced Savings refer to (1) Reduction of consumption consequent to a rise in prices (2) Taxes on individual income and wealth (3) Compulsory deposits imposed on income tax payers (4) Provident fund contribution of private sector employees

Last Answer :  Reduction of consumption consequent to a rise in prices

The method of calculating the national income by the product method is otherwise known as : (1) Income method (2) Value added method (3) Expenditure method (4) Net output method

Description : The method of calculating the national income by the product method is otherwise known as : (1) Income method (2) Value added method (3) Expenditure method (4) Net output method

Last Answer : (4) Net output method Explanation: Primarily there are three methods of measuring national income. Which method is to be employed depends on the availability of data and purpose. The methods ... account. In this method, National Output = National Expenditure (Aggregate Demand) = National Income.

What is the sum total of gross value added of all the firms in the country added with the net factor income from abroad? a) Gross Domestic Product b) Gross National Product c) Net Domestic Product d) Net National product

Description : What is the sum total of gross value added of all the firms in the country added with the net factor income from abroad? a) Gross Domestic Product b) Gross National Product c) Net Domestic Product d) Net National product

Last Answer : b) Gross National Product

What is the sum total of gross value added of all the firms in the country minus the depreciation? a) Gross Domestic Product b) Gross National Product c) Net Domestic Product d) Net National product

Description : What is the sum total of gross value added of all the firms in the country minus the depreciation? a) Gross Domestic Product b) Gross National Product c) Net Domestic Product d) Net National product

Last Answer : c) Net Domestic Product

What is the sum total of gross value added of all the firms in the country? a) Gross Domestic Product b) Gross National Product c) Net Domestic Product d) Net National product

Description : What is the sum total of gross value added of all the firms in the country? a) Gross Domestic Product b) Gross National Product c) Net Domestic Product d) Net National product

Last Answer : a) Gross Domestic Product

The difference between the Gross value added and Net value added is: a) Investment b) Value added c) Production flow d) Depreciation

Description : The difference between the Gross value added and Net value added is: a) Investment b) Value added c) Production flow d) Depreciation

Last Answer : d) Depreciation

The method of calculating the national income by the product method is otherwise known as : (1) Income method (2) Value added method (3) Expenditure method (4) Net output method

Description : The method of calculating the national income by the product method is otherwise known as : (1) Income method (2) Value added method (3) Expenditure method (4) Net output method

Last Answer : Net output method

The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the (A) Overhead cost (B) Working capital (C) Indirect production cost (D) Direct production cost

Description : The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the (A) Overhead cost (B) Working capital (C) Indirect production cost (D) Direct production cost

Last Answer : (B) Working capital

The difference between the GNP and the NNP is equal to the - (1) consumer expenditure on durable goods (2) direct tax revenue (3) indirect tax revenue (4) capital depreciation

Description : The difference between the GNP and the NNP is equal to the - (1) consumer expenditure on durable goods (2) direct tax revenue (3) indirect tax revenue (4) capital depreciation

Last Answer : (4) capital depreciation Explanation: Depreciation refers to two very different but related concepts: the decrease in value of assets (fair value depreciation), and the allocation of the cost of ... equal to capital depreciation. It is the wearing out, breaking down, or technological obsolescence.

Which of the following is an indirect tax? (1) Capital Gains Tax (2) Excise Duty (3) Wealth Tax (4) Estate Duty

Description : Which of the following is an indirect tax? (1) Capital Gains Tax (2) Excise Duty (3) Wealth Tax (4) Estate Duty

Last Answer : (2) Excise Duty Explanation: Some examples of indirect taxes include value added tax, excise duty, sales tax, stamp duty and custom duty levied on imports. These are taxes levied by the slate on expenditure and consumption, but not on property or income.

Which of the following is an indirect tax ? (1) Capital Gains Tax (2) Excise Duty (3) Wealth Tax (4) Estate Duty

Description : Which of the following is an indirect tax ? (1) Capital Gains Tax (2) Excise Duty (3) Wealth Tax (4) Estate Duty

Last Answer : Excise Duty

The difference between the GNP and the NNP is equal to the (1) consumer expenditure on durable goods (2) direct tax revenue (3) indirect tax revenue (4) capital depreciation

Description : The difference between the GNP and the NNP is equal to the (1) consumer expenditure on durable goods (2) direct tax revenue (3) indirect tax revenue (4) capital depreciation

Last Answer : capital depreciation