Question

Q. Which of the following is/are NOT included in the calculation of national income?

Select the correct answer using the code given below:

• A. 1, 2, and 4
• B. 2, 3 and 4
• C. 1, 3 and 4
• D. All of the above

Answer 1

The correct option is D All of the above

Explanation:

All statements are correct because all of them do not contribute to the value addition in the economy.

• Transfer payments are one sided payments, they do not involve exchange of goods and services.
• Capital gains are also not included in the national income because they do not add to the current flow of goods and services.
• Services of the house wives are not included in the national income because it is difficult to estimate the market value of these services.
• Goods made for self consumption are not included because they do not contribute to the current flow of goods and services.