How should the following be treated while calculating national income ? Give reasons for your answer.
(i) Profits earned by a branch of foreign bank in India.
(ii) Salary received by Indian employees working in American embassy in India.
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Will the following be included in the national income of India ? Give reasons for your answer.
(a) Financial assistance to flood victims: No, this will not be included in the national income as it is a transfer income. (b) Profits earned by the branches of a foreign bank...
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Should the following be treated as final expenditure or intermediate expenditure? Given reasons for your answer.
Reason: (i) It is final expenditure because it is investment expenditure. (ii) It is intermediate expenditure because it is an expenditure on single use producer goods.
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How are the following treated while calculating national income? Give reason for your answer. (i) Receipts from sale of land.
(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.
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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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How, should the following be treated while estimating national income ? Give reasons.
Reasons: (i) Expenditure on the education of children by a family is included in national income since it is a part of Private Final Consumption Expenditure. (ii) Payment of electricity bill by...
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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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