Question : Which of the following is not included in the calculation of national income?
Option 1: Payments for government transfer programs
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
Correct Answer: Payments for goods and services in the underground economy
Solution : The correct answer is (d) Payments for goods and services in the underground economy
The underground economy refers to economic activities that are not recorded or reported to the government for taxation or statistical purposes. These activities often involve illegal or informal transactions, such as black market sales or unreported income. Since these activities are not captured in official records, they are typically not included in the calculation of national income.
Option 1: Wages earned by foreign nationals in the country
Question : Which of the following should be included in national income or domestic income?
Option 1: Income earned by foreign residents within the domestic territory
Option 2: Income earned by domestic residents outside the domestic territory
Option 3: Income earned by foreign residents outside the domestic territory
Option 4: Income earned by domestic residents within the domestic territory
Question : Which of the following is included in the calculation of GDP?
Option 2: Consumer spending on durable goods
Option 3: Income earned by foreign nationals in the country
Option 4: Capital gains
Option 1: Rental income
Option 2: Dividend income
Option 3: Capital gains
Option 2: Consumer spending on non-durable goods
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