How should the following be treated while estimating national income ? Give reasons for your answer. (i) Festival gift from an employer.

(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...

Precautions: (i) Transfer of payments should not be includes as there is no value addition in the economy. (ii) Capital gains from sale of old goods should not be included. (iii) Commission etc...

 Reasons :  (i) Expenditure on Fertilizers-It is intermediate cost for the farmer and deducted from the value of output while arriving at National income, Therefore, not included. (ii) Purchase of Tractor-lt is included...

Reasons:  (i) Payment of Bonus- It will be included in national income as it is a part of the compensation of employees.  (ii) Payment of Interest-lt will not be included in the national...

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...

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...

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...

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...