Question

Whether the following items will be included in National Income? Give reasons for your answer.
(i) Payment of electricity bill by a factory.
(ii) Dividend on shares.
(iii) Increase in stock of consumer goods with households.
(iv) Bus fare paid by a passenger.
(v) Gains from sale of shares.

Answer 1

(i) No, it is a part of intermediate consumption expenditure.
(ii) Yes, as it Is a part of profits.
(iii) No, as it is assumed that such goods are consumed, the moment they are purchased.
(iv) Yes, it is a part of private final consumption expenditure.
(v) No, as it is a capital gain.