--%>

Estimating rational income

How will you treat the given in estimating rational income of India? Provide reasons for your answer.

(i) The value of bonus shares received by the shareholders of a company.
(ii) Interest received on loan provided to a foreign company in India.

E

Expert

Verified

(i) This is not comprised in national income since it is the return of financial capital and not of goods & services.

(ii) This is comprised in the national income as interest is a factor income and a portion of domestic income.

   Related Questions in Macroeconomics

  • Q : Value added technique for national

    What is the alternative name of value added technique of estimating national income? The alternative name of value added technique of estimating national income is production method.

  • Q : Competitive market What do you mean by

    What do you mean by the term Competitive market?

  • Q : Maximum Consumer Surplus Assume that

    Assume that you receive $18 worth of ‘jollies’ (that is, utility, satisfaction or pleasure) from the very first hole of golf played on a particular day, and that your extra jollies from succeeding the holes drops $1 for each and every hole played. You shou

  • Q : Would inflation targeting be a good

    Question: Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment?

    Q : Problem on rational consumption

    Whenever you dine at an “all-you-can-eat” buffet, the rational consumption prototype is to carry on eating till: (1) The restaurant goes bankrupt. (2) You have eaten as much food as it would encompass cost had you made your own meal at hom

  • Q : Interpreting Macroeconomic Conditions I

    I have a problem in an assignment which involves analyzing interest rates, the CPI(consumer price index) and wage rates as they impact the automotive and gaming (with an emphasis on casinos) industries. Analyze these indicators and prepare a 3-4 page report explaining

  • Q : Concept of deflationary gap Elucidate

    Elucidate the concept of deflationary gap. Answer: Deflationary gap is the deficit in aggregate demand from the level needed to maintain full employment equilibrium

  • Q : Illustration of equal marginal advantage

    Can someone please help me in finding out the accurate answer from the following question. Shoppers who shift among checkout lanes until it emerges that all register lines are probable to be equally time-consuming are trying to verify to the law of: (i) Equivalent mar

  • Q : List Which of the following lists

    Which of the following lists includes only capital resources (and ther Which of the following lists includes only capital resources (and therefore no labor or land resources)?

  • Q : Consumer Surplus and Producer Surplus

    In a graph of competitive market in equilibrium, the net surpluses producers and consumers enjoy generally equivalents the area among the: (i) Demand and supply curve however to the left of point of the market equilibrium. (ii) Horizontal axis and a 45°line origin