How are the following treated while calculating national income? Give reason for your answer.
(i) Receipts from sale of land.
(ii) Profit earned by the branch of an Indian bank in France.
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How should the following be treated while calculating national income ? Give reasons for your answer.
(i) It is factor income to abroad, so it is not included. (ii) It is included as factor income from abroad.
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How should the following be treated while calculating national income? Give reasons for your answer.
(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...
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State any four precautions that are taken while calculating national income by expenditure method.
(i) Do not include expenditure on transfer payment. (ii) Do not include expenditure on purchase of financial assets. (iii) Do not include expenditure on purchase of second hand goods. (iv) Do,...
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Giving reason, explain how the following should be treated while estimating national income: (i) Payment of excise duty by a firm.
Reasons: (i) Payment of excise duty only increases the market value of final goods and services. Therefore, this is not included in the estimation of national income. (ii) Payment of interest by...
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How should the following be treated while estimating national income ? Give reasons for your answer. (i) Festival gift from an employer.
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...
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Giving reason, explain how the following should be treated while estimating national income: (i) Free medical facilities by the employer.
Reasons : (i) Free medical facilities by the employer are included in the estimation of national income because it is a kind of wages in kind and therefore, a part of...
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How should the following be treated in estimating national income of a country ? You must give reasons for Your answer.
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...
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How should the following be treated while estimating national income ? You must give reason in support of your answer :
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...
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Explain the basis of classifying government receipts into revenue receipts and capital receipts.
Revenue Receipts-The receipts which neither create any liability nor lead to any reduction in assets are called Revenue Receipts. Capital Receipts-Capital receipts are receipts that either create liability or reduce...
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Classify the following into capital receipts and revenue receipts. Give reasons for your answers. (i) Recovery of loans
Recovery of Loans-It is a Capital Receipt, it leads to decline in the financial assets of the government. Interest received on Loans-It is a Revenue Receipts because it neither create...
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