Food purchased by a foreign tourist at a hotel in New Delhi is included/excluded in National Income.
Yes, Purchases by foreign tourists are ‘exports’ and, therefore, they are included in the national income through the Expenditure Method.
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Purchases by foreign tourists included/excluded in National Income
Yes, purchases by foreign tourists are ‘exports’ and, therefore, they are included in the national income through the Expenditure Method.
Profits earned by the branches of a foreign bank in India included/excluded in National Income
No, It is not included in the national income as it is a part of the factor income paid abroad. It is subtracted from domestic income to arrive at the national income.
Rent-free house given to an employee by an employer included/excluded in National Income
Yes, It is included in the national income by Income Method since it is a part of ‘Wages in Kind’ paid to employees. Explanation:- A rent-free house is one of the item of Wages in Kind. Wages in Kind is…
Interest on public debt included/excluded in National Income
No, Interest on public debt is not included in the national income as it is the interest paid on loans taken by the government to meet its consumption purposes and does not add to the flow of goods. Explanation:- Interest…
National Debt interest included/excluded in National Income
No, National Debt interest is not included in the national income as it is the interest paid on loans taken by the government to meet its consumption purposes and does not add to the flow of goods. Explanation:- National Debt…
Increase in the price of stocks lying with a trader included/excluded in the National Income
Answer:- No, It will not be included in the national income as it does not amount to any flow of goods. Explanation:- An increase in the price of lying stock is due to a rise in market price. The quantity…
Winning of a Lottery Prize or Crossword or Contests (Included/Excluded in National Income)
Answer:- No, It will not be included in the national income as it does not add to the flow of goods and services in the economy. In other words, winning of a Lottery prize or contest is a one-way transaction,…
Construction of new house (Excluded/Included in National Income)
Answer:- Yes, it will be included in the National Income as it is a part of capital formation and leads to the production of goods and services in the economy.
When net factor income from abroad is negative then:
Ans – (d) Explanation:- When Domestic Income is more than the National Income, the net factor income from abroad is negative. National Income = Domestic Income + Net factor income from abroad For example Domestic Income = ₹ 200 Crores…