Macro

National Income

Medium

Which of the following are included while calculating national income by expenditure method?

(A) Expenditure on single-use producer goods purchased by firms.

(B) Expenditure incurred by a private trust running an orphanage on the education of the children.

(C) Expenditure incurred by the government on building dams and bridges across the nation.

(D) Expenditure by foreigners on the final goods produced in the country.

Choose the correct answer from the options given below:

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

✅ Correct Option: 4

(A) Expenditure on single-use producer goods purchased by firms -> These are intermediate goods/raw materials. Including them would lead to double counting, so they are NOT included.

(B) Expenditure incurred by a private trust running an orphanage on the education of the children -> This is private final consumption expenditure by non-profit institutions serving households (NPISH). It IS included.

(C) Expenditure incurred by the government on building dams and bridges across the nation -> This is government capital expenditure on infrastructure development. It IS included as part of government expenditure.

(D) Expenditure by foreigners on the final goods produced in the country -> This represents exports of domestic production. It IS included in the expenditure method.

Hence, Option 4: (B), (C) and (D) only -> In the expenditure method, National Income = C + I + G + (X-M). Only final expenditures are counted to avoid double counting. Statement (A) involves intermediate goods which are excluded. Statement (B) is private consumption, (C) is government expenditure, and (D) is exports - all three are final expenditures included in national income calculation. -> correct

2023: 28 May Shift 2

Which of the following will be included in the National Income of India ?

(A) Donations given to a religious institution.

(B) Payment of Income Tax

(D) Profits earned by an Indian company from its branch in France

(E) Purchase of a television set by a consumer household

Choose the correct answer from the options given below :

2025: 31 May Shift 1

Caculate Net National Product at Market Price (NNP $_{MP}$ ).

Rs. 3000 crores
Rs. 3200 crores
Rs. 3137 crores
Rs. 3237 crores

2026: 31 May Shift 1

Which price index is used in USA as a measure of bulk buying of goods and services?

2025: 16 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Expenditure method	(I) Invetory investment
(B) Income method	(II) GDP in the phase of disposition
(C) Value added method	(III) GDP in the phase of distribution
(D) Value of output - sales	(IV) GDP in the phase of production

Choose the correct answer from the options given below:

2025: 21 May Shift 1

Which of the following are true about national income and related aggregates?

(A) National income includes factor income earned from abroad but does not include factor income paid abroad.

(B) Domestic income does not include factor income earned from abroad but includes factor income paid to abroad

(D) National income can never be smaller than domestic Income.

Choose the correct answer from the options given below:

2025: 28 May Shift 1

Which government body is responsible for reporting GDP in India ?

Department of Revenue
Central Board of Direct Taxes
Central Statistics Office
Niti Ayog

Solution

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