National Income include:a)Financial help to earthquake Victimsb)Pocket...
National income is the total value of a country’s final output of all new goods and services produced in one year. It includes wages from employment and self-employment, profits to firms, interest to lenders of capital and rents to owners of land, construction of a new house etc.
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National Income include:a)Financial help to earthquake Victimsb)Pocket...
National Income and Components
National Income is the total income earned by a country's residents, including wages, profits, and interest. It is an important economic indicator that reflects the overall economic health of a country. National Income includes various components that contribute to the total income of a nation.
Explanation
Financial help to earthquake victims:
Financial help provided to earthquake victims is considered as transfer payments and does not contribute to the national income. Transfer payments are payments made by the government to individuals without receiving any goods or services in return. Therefore, financial help to earthquake victims is not a part of the national income.
Pocket money of a child:
Pocket money given to a child is considered as personal income and is not included in the national income. Personal income refers to the income received by individuals from various sources such as wages, salaries, and investments. Since pocket money is a personal expense, it does not contribute to the national income.
Winning of a lottery prize:
Winning a lottery prize is considered as a windfall gain and is not a part of the national income. Windfall gains are unexpected income or profits that are not earned through productive activities. Therefore, the winning of a lottery prize does not contribute to the national income.
Construction of a new house:
Construction of a new house is considered as investment expenditure and is included in the national income. Investment expenditure refers to the expenditure made on the construction of new capital assets such as buildings, machinery, and equipment. Since the construction of a new house adds to the country's capital stock, it contributes to the national income.