MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Income Method

Whether the f...

Question

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.

Open in App

Solution

(i) Yes, it is a part of private final consumption expenditure.
(ii) Yes, it is a part of COE (Cost of Expenditure)
(iii) No, as it is a non-factor payment since the loan is not used for production but for consumption.
(iv) No, it is a part of intermediate consumption expenditure.
(v) Yes, it is a part of COE (Cost of Expenditure)

Suggest Corrections

thumbs-up

0

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. Identify the following as revenue expenditure and capital expenditure. Give reasons.
(i) Salary paid to Army officers.
(ii) Purchase of Metro coaches from Japan.
(iii) Repayment of Loan taken from World Bank.
(iv) Grants given by central government to state Government.
(v) Loan given to Union Territories.
(vi) Interest paid on National Debt
(vii) Expenditure on construction of Metro. (viii) Pension paid to retired Government employees.
(ix) 10% shares purchased by the Government in a private company.

Q. Whether the following items will be included in National Income? Give reasons for your answer.
(i) Financial help to flood victims.
(ii) Payment of telephone bill.
(iii) Employers' contribution to Provident Fund.
(iv) Rent received by an Indian from Building rented to Chinese Embassy.
(v) Free meals to employees.

Q. 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.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Income Method

ECONOMICS

Watch in App

explore_more_icon

Explore more

Standard XII Economics

Join BYJU'S Learning Program

CrossIcon