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National Income Accounting
Question
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How will you treat the following while estimating national income of India?
(i)    Dividend received by an Indian from his investment in shares of a foreign country.
(ii)    Money received by a family in India from relatives working aborad.
(iii)    Interest received on loans given to a friend for purchasing a car.

Answer

(i)   Dividend will be added to domestic income because it is factor income from abroad.
(ii)    It will not be included in national income because it is remittance (transfer receipt) from relatives from abroad.
(iii)    Interest will not be included in national income because amount of loan is meant for consumption purpose and not for production purpose.

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Some More Questions From National Income Accounting Chapter

Define microeconomics. Give one/two examples of microeconomics. Is study of cotton textile industry a microeconomic study or macroeconomic study? 

Distinguish between microeconomics and macroeconomics. Give an example of showing the difference between microeconomics and macroeconomics.

Briefly explain the following basic concepts related to NI:
 National Income (NI).

Briefly explain the following basic concepts related to NI:
Final Goods and Intermediate Goods. 

Briefly explain the following basic concepts related to NI:
Consumption Goods and Capital Goods

Briefly explain the following basic concepts related to NI:
Flow and Stock Concepts

Briefly explain the following basic concepts related to NI:
Gross Investment and Net Investment

Briefly explain the following basic concepts related to NI:
Domestic (Economic) Territory

Briefly explain the following basic concepts related to NI:
Normal Residents

Briefly explain the following basic concepts related to NI:
National Income at Current and Constant Prices (Nominal and Real NI).