how will you treat the following while estimating national income of India? give reasons of your answer.
(1) salaries received by Indian residents Working in Russian embassy in India.
(2) profits earned by an Indian bank from it's branches abroad.
(3) entertainment tax received by the government.
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Answer:
National income is measures are GDP,GNP,NDP,NNP.
GDP is total value of final goods and services produced WITHIN a country. GNP is total final goods and services produced by nationals of the country. Whereas NDP AND NNP are deducting depreciation(wearing of machines) from GDP and GNP respectively.
Explanation:
GDP is used in calculating National Income.All the three above are not considered in calculating National Income,because 1) For the first option GDP consider only income produced within country,whereas GNP considers the foreign income.
2)Same as above
3)Entertainment tax is indirect tax and it is not a factor of production,so it is also not considered in calculating National Income.
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