The value added method used in measuring national income is to
Measure output at factor cost
Avoid multiple counting of output
Deduct depreciation of capital assets
Add net factor income from abroad
Correct answer is D
By adding to its net factor income from abroad, we get NNPFC which is called national income.
Which of the following is a transfer income?
Dividends
Rent
Pensions
Interest
Correct answer is C
Examples of transfer payments include welfare, financial aid, social security, and government making subsidies for certain businesses.
In an industrial area, the location of industries is particularly influenced by
Extent of the division of labour
External economies
Internal economies
Nearness to financial institution
Correct answer is B
External economies of scale imply that as the size of an industry grows larger or more clustered, the average costs of doing business within the industry fall. This may occur due to increased specialization or training of workers, faster innovation or shared supplier relationships.
Following are the types of external economies of scale
Which of the following is a threat to the existence of middlemen?
Consumers cooperative society
Producers cooperative society
Sales agents
Large scale producers
Correct answer is A
Consumers cooperative society is an autonomous association of consumers united voluntarily to meet their common needs and aspirations. The cooperative society purchases in bulk directly from the producers which avails them discounts and in return, sells in small lots to their members, thereby eliminating the middlemen (both the wholesaler and retailer)
Peasant farming
Plantation agriculture
Commercial farming
Subsistent farming
Correct answer is D
Subsistence agriculture occurs when farmers grow food crops to feed themselves and their families. In subsistence agriculture, farm output is targeted to survival and is mostly for local requirements with little or no surplus trade. The typical subsistence farm has a range of crops and animals needed by the family to feed and clothe themselves during the year.