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
Correct Answer: Government subsidies to farmers
Solution : The correct answer is (b) Government subsidies to farmers
Government subsidies to farmers are considered a part of the income earned by the farmers and are included in the calculation of national income. These subsidies represent a transfer of funds from the government to the farmers and are considered as part of their income.
Question : Which of the following is included in the calculation of GDP?
Option 1: Payments for government transfer programs
Option 2: Consumer spending on durable goods
Option 3: Income earned by foreign nationals in the country
Option 4: Capital gains
Question : Which of the following is not included in the calculation of national income?
Option 1: Rental income
Option 2: Interest income
Option 3: Transfer payments
Option 2: Consumer spending on non-durable goods
Option 3: Capital gains
Option 4: Transfer payments
Option 1: Investment spending on stocks and bonds
Option 2: Government transfer payments
Option 3: Consumer spending
Option 4: Income earned by foreign nationals in the country
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile