Macro

National Income

Medium

Identify which of the following is not included while estimating national income?

Rent received from commercial banks located in Delhi.

Salary received by an Indian from any foreign embassy.

Direct purchases by foreigners from Indian markets.

Purchase of new shares of domestic company.

✅ Correct Option: 4

Option 1 -> Rent from commercial banks in Delhi is part of domestic production and included in national income.

Option 2 -> Salary received by Indians from foreign embassies is considered income of Indian residents and included in national income.

Option 3 -> Direct purchases by foreigners from Indian markets are exports, which form part of national income calculation.

Option 4 -> Purchase of shares is a financial transaction, not a productive activity, and is excluded from national income.

Hence, Purchase of new shares of domestic company -> National income includes only the value of goods and services produced in an economy. Purchase of shares is merely a transfer of ownership or a financial transaction that does not represent current production of goods and services. Only when new shares are issued and the company uses that capital for productive purposes does it contribute to national income through actual production activities, but the share purchase itself is not counted. Similarly, other financial transactions like purchase of old goods, second-hand items, and bonds are also excluded from national income calculation -> correct

2025: 3 June Shift 2

Rahul buys $90 \text{ kg}$ of sugar and $5$ pairs of shoes in a year. In the year $2000$ , the price of a $\text{kg}$ of sugar was $\text{Rs } 10$ and a pair of shoes was $\text{Rs } 100$ . Now suppose the prices of a $\text{kg}$ of sugar and a pair of shoes have gone up to $\text{Rs } 15$ and $\text{Rs } 120$ in the year $2005$ . What is the Consumer Price Index?

2022: 19 July Shift 2

Identify normal residents of India from amongst the following.

2026: 23 May Shift 1

Identify the correct statement with regards two sector economy model:

A. Total factor income is equal to aggregate consumption expenditure.

B. Consumers can dispose off their earnings through spending their entire income on consumption.

C. Balance of trade surplus.

D. Fair society through progressive tax regime.

Choose the correct answer from the options given below:

2022: 30 Aug Shift 2

Which of the following components, is NOT a part of compensation of employees, while estimating national income ?

2025: 31 May Shift 1

Calculate Gross Domestic Product at market price (GDP $_{MP}$ ).

Rs. 3500 crores
Rs. 3137 crores
Rs. 3140 crores
Rs. 3000 crores

2025: 13 May Shift 2

The benefits (or harms) a firm or an individual causes to another for which they are not paid (or penalized) is referred to as .........

Identify which of the following is not included while estimating national income?

Solution

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