Check sibling questions

Giving valid reasons explain which of the following will not be included in estimation of National Income of India?

a) Purchase of shares of X. Ltd.by an investor in the National Stock Exchange.

b) Salaries paid by the French Embassy, New Delhi to the local workers of the housekeeping department.

c) Compensation paid by the Government of India to the victims of floods.

(3 Marks)

Answer

Following will not be included in estimation of National Income of India:

a) As such transactions are mere paper claims and do not lead to any value addition.

c) Compensation paid by the Government of India is mere transfer payment and does not lead to any flow of goods and services in an economy.

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Davneet Singh

Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 12 years. He provides courses for Maths and Science at Teachoo.