mobile sets purchased by a dealer . will it be included in national income or not?why?
Answers
Answer:
Interest on public debt. No, it is not included in the national income as it is the interest paid on loans taken by government to meet its consumption purposes. ... No, it is not included in the national income as it is a part of the factor income paid abroad. It is subtracted from domestic income to get national income.
Answer:
(i) No, as it has already been included in the year of its original purchase.
(ii) No, as such interest is treated as a transfer income because government generally borrows money to meet its consumption expenditure and no productive activity is linked with such loan.
(iii) Yes, as it is a part of COE.
(iv) Yes, it is a part of private final consumption expenditure.
(v) Yes. interest received is a factor income because debenture is a sort of loan taken by a production unit.