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Whether the f...

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Whether the following items will be included in National Income?
(i) Rent earned by Reliance from its building in USA.
(ii) Gifts from Abroad.
(iii) Retained earnings of resident companies from abroad.
(iv) Expenses of foreign visitors in India.
(v) Gifts to a trust from Japan.

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Solution

(i) Yes, it is a factor income from abroad.
(ii) No, it is a transfer income.
(iii) Yes, it is a factor income from abroad.
(iv) Yes, it is a part of Net Exports.
(v) No, it is a current transfer from rest of the world.

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Code:

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