Giving reasons, explain treatment assigned to the following while estimating national income:
(i)    Family members working free on the farm owned by the family.
(ii)    Payment of interest on borrowings by general government.

Solution

(i) Imputed salaries of family members will be included in national income.
(ii) Interest will not be included in national income because borrowings by general government is treated for consumption purposes.

Some More Questions From Non-Competitive Markets Chapter

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

National Income (NI)

Final Goods and Intermediate Goods

Giving reasons categorise the following into intermediate products and final products:
(i) Furniture purchased by a school
(ii) Chalks, dusters purchased by a school.

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Non-Competitive Markets

Giving reasons, explain treatment assigned to the following while estimating national income:
(i)    Family members working free on the farm owned by the family.
(ii)    Payment of interest on borrowings by general government.

Some More Questions From Non-Competitive Markets Chapter

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

National Income (NI)

Final Goods and Intermediate Goods

Giving reasons categorise the following into intermediate products and final products:
(i) Furniture purchased by a school
(ii) Chalks, dusters purchased by a school.

Consumption Goods and Capital Goods

Flow and Stock Concepts

Giving reasons categorise the following into stocks and flows:
(i) Losses (ii) Capital (iii) Production (iv) Wealth.

Gross Investment and Net Investment

Domestic (Economic) Territory

National Income at Current and Constant Prices (Nominal and Real NI)

Mock Test Series

NCERT Sample Papers

Entrance Exams Preparation

Phone Number

Email Address

Loaction

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Non-Competitive Markets

Giving reasons, explain treatment assigned to the following while estimating national income: (i) Family members working free on the farm owned by the family.(ii) Payment of interest on borrowings by general government.

Some More Questions From Non-Competitive Markets Chapter

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

National Income (NI)

Final Goods and Intermediate Goods

Giving reasons categorise the following into intermediate products and final products:(i) Furniture purchased by a school(ii) Chalks, dusters purchased by a school.

Consumption Goods and Capital Goods

Flow and Stock Concepts

Giving reasons categorise the following into stocks and flows:(i) Losses (ii) Capital (iii) Production (iv) Wealth.

Gross Investment and Net Investment

Domestic (Economic) Territory

National Income at Current and Constant Prices (Nominal and Real NI)

Mock Test Series

NCERT Sample Papers

Entrance Exams Preparation

Giving reasons, explain treatment assigned to the following while estimating national income:
(i) Family members working free on the farm owned by the family.
(ii) Payment of interest on borrowings by general government.

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

Giving reasons categorise the following into intermediate products and final products:
(i) Furniture purchased by a school
(ii) Chalks, dusters purchased by a school.

Giving reasons categorise the following into stocks and flows:
(i) Losses (ii) Capital (iii) Production (iv) Wealth.