Question : Which of the following is included in national income based on the expenditure method?
Option 1:
Social Security benefits
Option 2: Capital investments by businesses
Option 3: Foreign aid received by the country
Option 4: Personal income taxes
Correct Answer: Capital investments by businesses
Solution : The correct answer is (b) Capital investments by businesses
Capital investments by businesses, which refer to the spending on physical assets like machinery, equipment, and infrastructure, are included in the calculation of national income based on the expenditure method. These investments represent the purchase of new assets that contribute to economic production and are considered a component of total expenditure in the economy.
Question : Which of the following is NOT included in national income based on the expenditure method?
Option 1: Personal consumption expenditure
Option 2: Government expenditure
Option 3: Net exports
Option 4: Personal savings
Question : Which of the following should be included in national income based on the income method?
Option 1: Capital gains from the sale of stocks
Option 2: Government subsidies to farmers
Option 3: Transfer payments to unemployed individuals
Option 4: Income earned by foreign investors in the country
Question : Which of the following are not included in the national income?
Option 1: Capital loss
Option 2: Capital formation
Option 3: Brokers commission
Option 4: Expenditure incurred by a foreign tourist.
Question : Which of the following is not included in the calculation of national income?
Option 1: Wages earned by foreign nationals in the country
Option 2: Interest income earned by domestic residents from foreign investments
Option 3: Profit earned by domestic firms in foreign countries
Option 4: Payments for goods and services in the underground economy
Question : Which of the following is included in national income based on the income method?
Option 1: Personal savings
Option 2: Corporate profits
Option 3: Government transfers
Option 4: Imports
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