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Question : Which of the following precautions are taken while calculating national income from income method?

Option 1: Transfers income are not included in the national income.

Option 2: Income from sale of secondhand goods will not be included.

Option 3: Income from sale of shares, bonds and debentures will not be included.

Option 4: All of the above.


Team Careers360 9th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: All of the above.


Solution :

The precautions taken while calculating national income from income methods are-
  1. Transfers income are not included in the national income.
  2. Income from sale of secondhand goods will not be included.
  3. Income from sale of shares, bonds and debentures will not be included.
  4. Income from lottery, horse race, etc or not included.
  5. Imputed value of services provided by the owners of production unit will be included.
  6. Payments out of past savings are not included.
Hence, Option D is correct.

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