Explain how the following are treated in estimating National Income:
Earnings of the shareholders from the sale of shares.

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Solution

Treatment of earnings of the shareholders from the sale of shares while calculating national income:Purchase or sale of financial assets like shares is not included while calculating national income.

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Giving reasons, explain how should the following be treated in estimating National Income:

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(i) Capital gain on sale of a house

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(iii) Interest on public debt

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