26. Will the following be included in the National Income of India? Support your
answer with reasons.
(a) Expenditure of government on providing free educational services.
(b) Earnings of shareholders from sale of shares.
(c) Salary paid to Americans working in Indian Embassy in America.
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Answer:
(i) No, it is a transfer income.
(ii) No, it is a part of intermediate consumption expenditure.
(iii) Yes, it is a part of private final consumption expenditure.
(iv) No, as it is a windfall gain and there is no productive activity involved in it.
(v) Yes, it is a part of Government final consumption expenditure.
(vi) No, it is a transfer income.
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