Giving reason, explain how should the following be treated in estimati

1.	Giving reason, explain how should the following be treated in estimating National Income: (i) Electricity consumed by a firm. (ii) Pension paid to retired employees. (iii) Free treatment of the poor in hospitals.
Answer» Reason: (i) Included in National Income because it results in inflows of income through productive activities. (ii) It is not included in the national income because it is a transfer payment. (iii) It is not included in national income because it is unproductive.

Giving reason, explain how should the following be treated in estimating National Income: (i) Electricity consumed by a firm. (ii) Pension paid to retired employees. (iii) Free treatment of the poor in hospitals.

Answer»

Reason:

(i) Included in National Income because it results in inflows of income through productive activities.

(ii) It is not included in the national income because it is a transfer payment.

(iii) It is not included in national income because it is unproductive.