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Non-Competitive Markets
Giving reasons explain whether the following are included in national income.
(i) Profits earned by a branch of foreign bank.
(ii) Interest paid by an individual on a loan taken to buy a car.
(iii) Expenditure on machines for installation in a factory.
(i) Not included in national income of India as it is earned by a foreign bank.
(ii) Not included because loan is not taken for productive purpose.
(iii) It is included when measured by expenditure method as it is final investment expenditure.
Sponsor Area
Giving reasons categorise the following into stocks and flows:
(i) Losses (ii) Capital (iii) Production (iv) Wealth.
Value of Output vs. Value Added
Factor Payment (Income) vs. Transfer Payment (Income)
Sources of Domestic Income
Sponsor Area
Sponsor Area