Will the following be included in the national income of India ? Give reasons for your answer.

(a) Profits earned by foreign companies in India: Profit earned by foreign companies in India will be included in the domestic product of India as they lie within the domestic...

(i) Land is a free gift of nature and cannot be produced. So the sale of it is not included. (ii) It is included as factor income from abroad.

(i) It is factor income to abroad, so it is not included. (ii) It is included as factor income from abroad.

(i) Bank is a production unit so this is a factor income and hence should be included. (ii) It is a part of the profits of production units which is distributed to the...

Reasons :  (i) Festival gift from an employer is not included in the estimation of national income because this is a transfer payment.  (ii) Rent free house from an employer is included...

(i) National Income (NNPFC) NNPFC=Private final consumption expenditure + Government final consumption expenditure+ Net domestic capital formation - Net imports - Net Indirect tax - Net factor income to Abroad =600+100+110-20-(120-20)-5 Rs. 685...

(i) National Income (NNPFC) =Private final consumption expenditure + Government final consumption expenditure + Gross domestic fixed capital formation + Net change in stock - Net imports - Depreciation - Net...

NI=(v) + (iv) + (iii + vii) - (i) - (ix) - (viii) = Private final consumption expenditure + Govt. final consumption expenditure + (net domestic fixed capital formation + Net...

Reasons: (i) Taking care of aged parents - Should be included because it is a productive service rendered to the parents. (ii) Payments of Corporation Tax - Should not be included because...

Reasons: (i) Bonus - It should be included because it is compensation paid to employees. (ii) Addition to stock - It should also be included because it is an investment, a final...