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National Income doesn’t include :
  • a)
    Interest on unproductive national debt 
  • b)
    Income for government expenditure 
  • c)
    The payments by the household to firm for the purchase of goods and services 
  • d)
    Undistributed profit 
Correct answer is option 'A'. Can you explain this answer?
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National Income doesn’t include :a)Interest on unproductive nati...
National income is the sum of the incomes of the owners of the production factors, belonging to a specific nationality and during a specific period of time, usually one year.

It includes:
Income of labour: Salaries
Income of capital: Rents, interests, utilities and dividends
Income of land: Rent of the land
National income doesn’t include those incomes that doesn’t have the provision of a good or a service as a counterpart, like:

Subsidies
Child benefits
Retirement pensions

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Most Upvoted Answer
National Income doesn’t include :a)Interest on unproductive nati...
National income refers to the total value of goods and services produced within a country's borders in a specific time period, usually a year. It is an important measure of a country's economic performance and is used to analyze and compare the economic development and standard of living of different countries.

National income can be measured in three ways:

1. Gross Domestic Product (GDP): This is the most commonly used measure of national income. It calculates the total value of all final goods and services produced within a country's borders in a specific time period. GDP includes both consumption by households, investment by businesses, government spending, and net exports (exports minus imports).

2. Gross National Income (GNI): This measure adds to GDP the income received from abroad, including net income from foreign investments and remittances from overseas workers. GNI takes into account the income generated by a country's residents, regardless of where they are located.

3. Net National Income (NNI): This measure adjusts GNI for depreciation and depletion of natural resources. It accounts for the wear and tear of capital goods and the consumption of natural resources during the production process.

National income is an important indicator of a country's economic health and is used by policymakers to make informed decisions about fiscal and monetary policies. It is also used to measure and compare the living standards of different countries and to analyze income distribution within a country.
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Features of a Mixed Economy:A mixed economy is an economic system that combines elements of both a market economy and a planned economy. It incorporates features of both private enterprise and government intervention. The correct answer is D, as all of the following features are characteristic of a mixed economy:1. Planned economy:A mixed economy includes elements of a planned economy, where the government plays a role in guiding and regulating economic activities. It formulates economic plans and policies to ensure the efficient allocation of resources and to promote economic stability.2. Dual system of pricing:In a mixed economy, there exists a dual system of pricing, which means that both market prices and government-set prices coexist. While market forces determine prices for most goods and services, the government may intervene to regulate prices in certain sectors to protect consumers or promote social welfare.3. Balanced regional development:Another characteristic of a mixed economy is the emphasis on balanced regional development. The government intervenes to ensure that economic growth and development are not concentrated in specific regions or industries but are spread across different regions and sectors. This helps to reduce regional disparities and promote overall economic stability and social welfare.Benefits of a Mixed Economy:A mixed economy offers several benefits due to its combination of market forces and government intervention. Some of these benefits include:1. Economic efficiency:By incorporating market mechanisms, a mixed economy allows for resource allocation based on supply and demand, which promotes economic efficiency. Market forces encourage competition, innovation, and productivity, leading to higher levels of economic growth.2. Social welfare:Government intervention in a mixed economy enables the provision of public goods and services that may not be adequately provided by the market alone. This includes areas such as healthcare, education, infrastructure, and social security, ensuring a certain level of social welfare and equity.3. Stability and regulation:The government's role in a mixed economy helps to maintain economic stability through macroeconomic policies such as fiscal and monetary measures. It also regulates certain sectors to prevent market failures, protect consumer rights, and ensure fair competition.Conclusion:A mixed economy combines the advantages of both market forces and government intervention. It allows for economic efficiency, social welfare, and stability. The features of a mixed economy include elements of a planned economy, a dual system of pricing, and balanced regional development. These features work together to create a system that promotes both economic growth and social welfare.

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National Income doesn’t include :a)Interest on unproductive national debtb)Income for government expenditurec)The payments by the household to firm for the purchase of goods and servicesd)Undistributed profitCorrect answer is option 'A'. Can you explain this answer?
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