Question : Which of the following is not included in the calculation of national income?
Option 1: Rental income
Option 2: Dividend income
Option 3: Capital gains
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 unreported or illegal and not accounted for in official records. This includes activities such as undeclared income, informal work, and illegal transactions. Since these activities are not recorded or reported, they are not included in the calculation of national income.
Option 2: Interest income
Option 4: Transfer payments
Option 4: Wage income
Option 3: Dividend income
Option 4: Sales tax
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