Question : Which of the following is an example of a capital transfer?
Option 1: A government grant to a research institution
Option 2: A payment for a good or service
Option 3: A tax on income
Option 4: A payment for a loan
Answer (1)
25th Jan, 2024
Correct Answer: A government grant to a research institution
Solution : The correct answer is d) Capital gains.
Capital gains are not considered a component of national income. National income refers to the total income earned by individuals, businesses, and other entities within a country during a specific time period. It includes various components, but capital gains, which are profits realized from the sale of assets such as stocks, bonds, or real estate, are not included in national income.
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