Whether the following items will be included in National Income? Give reasons for your answer.
(i) Monthly allowance received by a college student from home.
(ii) Expenditure incurred by a firm on sponsoring a Reality show.
(iii) Expenditure incurred by normal residents on foreign travel.
(iv) Prize won in a lottery.
(v) Expenditure by government in providing free education.
(vi) Money received by people from their family members who are permanently settled abroad.

Open in App

Solution

(i) No, it is a transfer income.
(ii) No, it is a part of intermediate consumption expenditure.
(iii) Yes, it is a part of private final consumption expenditure.
(iv) No, as it is a windfall gain and there is no productive activity involved in it.
(v) Yes, it is a part of Government final consumption expenditure.
(vi) No, it is a transfer income.

Suggest Corrections

Similar questions

Q. Whether the following items will be included in National Income? Give reasons for your answer.
(i) Free meals to beggars.
(ii) Wages received by an Indian working in British Embassy.
(iii) Medical facilities to government employees.
(iv) Purchase of vegetables by a restaurant.
(v) Government Expenditure on street light.

Q. Whether the following items will be included in National Income? Give reasons for your answer.
(i) Purchase of a second hand machine from a domestic firm.
(ii) Interest received on loans taken by government.
(iii) Leave travel allowance paid to employees by a company.
(iv) Direct purchases made by resident households.
(v) Interest received on debentures by debenture-holders.

Q. Whether the following items will be included in National Income?
(i) Purchase of books by a student.
(ii) Bonus to employees.
(iii) interest paid by an individual on loan taken.
(iv) Expenditure on repair of fixed capital asset.
(v) Free medical facilities by the employer.

Percentage increase over the previous year in the total income of families in City A

Percentage Expenditure incurred by families in A in excess of that by families in B

Percentage distributions of the total expenditure incurred by families in City B

Percentage increase in the number of families

Note: total expenditure comprises expenditure towards food, recreation, health and others.

Total income = total expenditure

In 2003, sixty percent of subscribers in Europe were men. Given that women subscribers increase at the rate of 10 percent per annum and men at the rate of 5 percent per annum, what is the approximate percentage growth of subscribers between 2003 and 2010 in Europe? The subscription prices are volatile and may change each year.

Which of the following is a compulsory payment imposed on persons or companies by the government to meet the expenditure incurred on providing benefits to the people?

Join BYJU'S Learning Program