Which of the following items are not included in national income:1. In

1.	Which of the following items are not included in national income:1. Intermediate goods2. Transfer payments3. Windfall gains4. Sale of second-hand goods5. Agriculture labour6. Household service of housewivesSelect the correct option from the following:1. 1,2,3,4 and 62. 1,2,4,5 and 63. 1,3,4,5 and 64. All of the above
Answer» Correct Answer - Option 1 : 1,2,3,4 and 6 The correct answer is 1,2,3,4 and 6. Transfer payments are unilateral payments without any quid pro quo eg: gifts, donations, grants, unemployed allowances etc.( not included in National Income) Windfall gains : lottery prizes, prize money from game show etc.(not included National Income). Agriculture labour is a factor of production; it is included in National Income. What is National Income? The total value of final goods and services produced by the normal residents during an accounting year, after adjusting depreciation. It is Net National Product (NNP) at Factor Cost (FC). It does not include taxes, depreciation, and non-factor inputs (raw materials) Domestic Income – Total value of final goods and services produced within a domestic territory during an accounting year, after adjusting depreciation. It is NDP at FC Both NNP and NDP can be measured at constant prices (real income) or market prices (nominal income) Domestic Income + NFIA = National Income

Which of the following items are not included in national income:1. Intermediate goods2. Transfer payments3. Windfall gains4. Sale of second-hand goods5. Agriculture labour6. Household service of housewivesSelect the correct option from the following:1. 1,2,3,4 and 62. 1,2,4,5 and 63. 1,3,4,5 and 64. All of the above

Answer» Correct Answer - Option 1 : 1,2,3,4 and 6

The correct answer is 1,2,3,4 and 6.

Transfer payments are unilateral payments without any quid pro quo eg: gifts, donations, grants, unemployed allowances etc.( not included in National Income)
Windfall gains : lottery prizes, prize money from game show etc.(not included National Income).

Agriculture labour is a factor of production; it is included in National Income.

What is National Income?
The total value of final goods and services produced by the normal residents during an accounting year, after adjusting depreciation.

It is Net National Product (NNP) at Factor Cost (FC).
It does not include taxes, depreciation, and non-factor inputs (raw materials)
Domestic Income – Total value of final goods and services produced within a domestic territory during an accounting year, after adjusting depreciation.
It is NDP at FC
Both NNP and NDP can be measured at constant prices (real income) or market prices (nominal income)
Domestic Income + NFIA = National Income

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