Question
Which of the following will NOT be included in the estimation of national income? (i) Expenses on electricity by a factory (ii) Financial help to earthquake victims (iii) Imputed value of production for self-consumption (iv) Brokerage on sale of bonds
The correct answer is
Both (i) and (ii)
National income includes all goods and services produced within a country. Expenses on electricity by a factory are considered production costs, and financial help to earthquake victims is a transfer payment, not part of GDP. Therefore, both (i) and (ii) are not included in national income calculation.
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Important Questions from Economy
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- Which of the following statements regarding the estimation of India's national and per capita income during the colonial rule is correct?
What was one of the major characteristics of India's economy at the time of independence in 1947?
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