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In calculating National Income which of the following is included?
- a)Services of housewives
- b)Pensions
- c)Income of smugglers
- d)Income of watchmen
Correct answer is option 'D'. Can you explain this answer?
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Most Upvoted Answer
In calculating National Income which of the following is included?a) ...
National Income refers to the total value of goods and services produced within a country in a year, together with the income earned by its citizens and foreigners residing in the country. In calculating National Income, the following factors are included:
1. Gross Domestic Product (GDP): GDP is the total value of goods and services produced within a country in a year.
2. Gross National Product (GNP): GNP is the total value of goods and services produced by the citizens of a country, including those living abroad, in a year.
3. Net Factor Income from Abroad (NFIA): NFIA is the difference between the income earned by the citizens of a country from their investments abroad and the income earned by foreigners from their investments in the country.
4. Indirect Taxes: Indirect taxes are taxes imposed by the government on the production and sale of goods and services.
5. Depreciation: Depreciation is the decrease in the value of fixed assets over time due to wear and tear.
6. Net Domestic Product (NDP): NDP is the GDP minus depreciation.
In calculating National Income, the following items are not included:
1. Services of Housewives: The services of housewives are not included in National Income as they are not part of the formal economy.
2. Pensions: Pensions are not included in National Income as they are a transfer payment and not a payment for goods or services.
3. Income of Smugglers: The income of smugglers is not included in National Income as it is illegal.
4. Income of Watchmen: The income of watchmen is included in National Income as it is a payment for services rendered.
1. Gross Domestic Product (GDP): GDP is the total value of goods and services produced within a country in a year.
2. Gross National Product (GNP): GNP is the total value of goods and services produced by the citizens of a country, including those living abroad, in a year.
3. Net Factor Income from Abroad (NFIA): NFIA is the difference between the income earned by the citizens of a country from their investments abroad and the income earned by foreigners from their investments in the country.
4. Indirect Taxes: Indirect taxes are taxes imposed by the government on the production and sale of goods and services.
5. Depreciation: Depreciation is the decrease in the value of fixed assets over time due to wear and tear.
6. Net Domestic Product (NDP): NDP is the GDP minus depreciation.
In calculating National Income, the following items are not included:
1. Services of Housewives: The services of housewives are not included in National Income as they are not part of the formal economy.
2. Pensions: Pensions are not included in National Income as they are a transfer payment and not a payment for goods or services.
3. Income of Smugglers: The income of smugglers is not included in National Income as it is illegal.
4. Income of Watchmen: The income of watchmen is included in National Income as it is a payment for services rendered.
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In calculating National Income which of the following is included?a) ...
Calculation of National Income
National income is the total value of all goods and services produced within a country during a specific period of time. It includes income earned by individuals, businesses, and the government. In calculating national income, the following are included:
1. Wages and Salaries
Wages and salaries are the payments made to employees for their work. This includes the income earned by workers in different sectors such as agriculture, manufacturing, services, etc.
2. Rent
Rent is the income earned by owners of land and other assets such as buildings, machinery, and equipment. It is a payment made by the tenants for using the assets owned by the landlords.
3. Interest
Interest is the income earned by the owners of capital such as bonds, stocks, and other financial assets. It is the payment made by the borrowers for using the capital owned by the lenders.
4. Profit
Profit is the income earned by businesses after deducting all expenses. It includes the income earned by the owners of the business as well as the income earned by the employees.
5. Income of Watchmen
In calculating national income, the income earned by watchmen is also included. This is because watchmen provide a service to the society and their income is a part of the total value of goods and services produced in the country.
Exclusions from National Income
There are certain items that are excluded from the calculation of national income. These include:
1. Transfer Payments
Transfer payments are payments made by the government to individuals without any corresponding production of goods and services. Examples include social security payments, welfare payments, and unemployment benefits.
2. Gifts and Inheritances
Gifts and inheritances are not included in national income as they are not earned through production.
3. Illegal Activities
Income earned through illegal activities such as smuggling, drug trafficking, and prostitution is not included in national income as they are not legal activities.
Conclusion
In conclusion, national income is the total value of all goods and services produced within a country during a specific period of time. It includes income earned by individuals, businesses, and the government. In calculating national income, the income earned by watchmen is also included as they provide a service to the society. However, income earned through illegal activities and gifts and inheritances are not included in national income.
National income is the total value of all goods and services produced within a country during a specific period of time. It includes income earned by individuals, businesses, and the government. In calculating national income, the following are included:
1. Wages and Salaries
Wages and salaries are the payments made to employees for their work. This includes the income earned by workers in different sectors such as agriculture, manufacturing, services, etc.
2. Rent
Rent is the income earned by owners of land and other assets such as buildings, machinery, and equipment. It is a payment made by the tenants for using the assets owned by the landlords.
3. Interest
Interest is the income earned by the owners of capital such as bonds, stocks, and other financial assets. It is the payment made by the borrowers for using the capital owned by the lenders.
4. Profit
Profit is the income earned by businesses after deducting all expenses. It includes the income earned by the owners of the business as well as the income earned by the employees.
5. Income of Watchmen
In calculating national income, the income earned by watchmen is also included. This is because watchmen provide a service to the society and their income is a part of the total value of goods and services produced in the country.
Exclusions from National Income
There are certain items that are excluded from the calculation of national income. These include:
1. Transfer Payments
Transfer payments are payments made by the government to individuals without any corresponding production of goods and services. Examples include social security payments, welfare payments, and unemployment benefits.
2. Gifts and Inheritances
Gifts and inheritances are not included in national income as they are not earned through production.
3. Illegal Activities
Income earned through illegal activities such as smuggling, drug trafficking, and prostitution is not included in national income as they are not legal activities.
Conclusion
In conclusion, national income is the total value of all goods and services produced within a country during a specific period of time. It includes income earned by individuals, businesses, and the government. In calculating national income, the income earned by watchmen is also included as they provide a service to the society. However, income earned through illegal activities and gifts and inheritances are not included in national income.
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In calculating National Income which of the following is included?a) Services of housewives b) Pensions c) Income of smugglers d) Income of watchmen Correct answer is option 'D'. Can you explain this answer?
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In calculating National Income which of the following is included?a) Services of housewives b) Pensions c) Income of smugglers d) Income of watchmen Correct answer is option 'D'. Can you explain this answer? for SSC 2024 is part of SSC preparation. The Question and answers have been prepared according to the SSC exam syllabus. Information about In calculating National Income which of the following is included?a) Services of housewives b) Pensions c) Income of smugglers d) Income of watchmen Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for SSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In calculating National Income which of the following is included?a) Services of housewives b) Pensions c) Income of smugglers d) Income of watchmen Correct answer is option 'D'. Can you explain this answer?.
In calculating National Income which of the following is included?a) Services of housewives b) Pensions c) Income of smugglers d) Income of watchmen Correct answer is option 'D'. Can you explain this answer? for SSC 2024 is part of SSC preparation. The Question and answers have been prepared according to the SSC exam syllabus. Information about In calculating National Income which of the following is included?a) Services of housewives b) Pensions c) Income of smugglers d) Income of watchmen Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for SSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In calculating National Income which of the following is included?a) Services of housewives b) Pensions c) Income of smugglers d) Income of watchmen Correct answer is option 'D'. Can you explain this answer?.
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