How should the following be treated while calculating national income? Give reasons for your answer.
(i) Interest received by households from banks.
(ii) Dividend received by shareholders.
How should the following be treated while calculating national income? Give reasons for your answer.
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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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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) It is factor income to abroad, so it is not included. (ii) It is included as factor income from abroad.
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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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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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