Question

Oman oil is selling oil products in UAE and generating healthy income, this income is included in GDP of Oman.

Select one:

True

False

Increase in wages of employees reduces the supply in country.

Select one:

True

False

Answer 1

1) 

False

 

Explanation:

Gross domestic product is be sum total of money value of all final goods and services produced within the domestic territory ( Oman here)  of the country during an accounting year and here GDP of Oman  include the income generated within the domestic territory of Oman. When a Oman is selling product at UAE it is a  factor income from abroad and which is not included in GDP, the given statement is false.  

 

2)

True

 

Explanation:

When the wage of employees increases it leads to an increase in the cost of production and any increase in cost of production decreases the supply as a result supply curve shift leftward so the given statement is true.

1) False

2) True