Question : Which of the following or not included in the national income?
Option 1: Sale and purchase of financial assets
Option 2: Payment of bonus
Option 3: Free services by government
Option 4: Capital formation
Correct Answer: Sale and purchase of financial assets
Solution : Sale and purchase of financial assets like shares, bonds, debentures do not contribute to current flow of goods and services. These financial assets are just paper claims and involves a change of title only.
Hence option A is correct.
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.
Option 1: Capital gain
Option 3: Interest on loan paid by the commercial bank
Option 4: All of the above.
Question : Which of the following precautions are taken while calculating national income from income method?
Option 1: Transfers income are not included in the national income.
Option 2: Income from sale of secondhand goods will not be included.
Option 3: Income from sale of shares, bonds and debentures will not be included.
Question : Which of the following are the precautions of calculating national income through expenditure method?
Option 1: Expenditure on intermediate goods will not be included.
Option 2: Transfer payments are not included.
Option 3: Purchase of secondhand goods will not be included
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
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