WHICH OF THE FOLLOWING WILL BE INCLUDED IN NATIONAL INCOME
MONEY RECEIVED BY GOVERNMENT FROM SALE OF A PUBLIC SECTOR FIRM TO A PRIVATE OWNER
COMMODITIES USED IN SCIENTIFIC RESEARCH
RENT RECEIVED BY INDIAN RESIDENTS ON THEIR BUILDINGS RENTED OUT TO FOREIGNERS IN INDIA
PAYMENT OF DEATH DUTY
Answers
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Explanation:
Some of the major items whether included or excluded in national income are as follows:
1. Construction of a new house.
Yes, it will be included in the national income as it is a part of capital formation and leads to production of goods and services in the economy.
2. Winning of a lottery prize.
No, it will not be included in the national income as it does not add to the flow of goods and services in the economic
3. Increase in the prices of stocks lying with a trader.
No, it will not be included in the national income as it does not amount to any flow of goods.
4. National debt interest.
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.
5. Rent-free house given to an employee by an employer.
Yes, it is included in the national income by Income Method since it is a part of ‘wages in kind’ paid to employees.
6. Profit earned by foreign banks in India.
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.
7. Purchases by foreign tourists.
OR
Food purchased by a foreign tourist at a hotel in New Delhi.
Yes, purchases by foreign tourists are ‘exports’ and, therefore, they are included in the national income through the Expenditure Method.
8. Rent received by Indian residents on their buildings rented out to foreigners in India.
Yes, it will be included in the national income as it is a part of the factor income from abroad.
Answer:
money received by government from sale of a public sector firm to a private owner commodities used in a scientific research rent received by Indian residents on
their buildings rented out to foreigners in India payment of death duty