Giving valid reasons, explain which of the following will not be included in the estimation of the 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 housekeeping department.
c) Compensation paid by the Government of India to the victims of floods.
Solution:
Point (a) and (c) are not included while calculating national income :
a) Purchase of shares of X. Ltd. by an investor in the National Stock Exchange.- It is just on papers no value addition is there
(c) Compensation paid by the Government of India to the victims of floods. - It is the transfer payment or one sided payment with no inflow and outflow of goods and services is there.
Point (a) and (c) are not included while calculating national income :
a) Purchase of shares of X. Ltd. by an investor in the National Stock Exchange.- It is just on papers no value addition is there
(c) Compensation paid by the Government of India to the victims of floods. - It is the transfer payment or one sided payment with no inflow and outflow of goods and services is there.