Question
How are the following treated in estimation of national income? Give reasons in support of your answer.
(i) Money received from sale of shares.
(ii) Commission received by a property dealer from the buyer and seller of an house.
(iii) Payment of wealth tax.
(iv) Money received from sale of second-hand goods.
Solution
(i) It should not be included because shares are just paper titles which do not contribute in production directly.
(ii) It should be included since property dealer has rendered new service in sale/ purchase of a house.
(iii) It should not be included because it is a compulsory transfer payment to the government.
(iv) It should not be included because it is not sale proceed of currently produced goods.
