--%>

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 : Purchasing and consumption of

    The usual household maximizes the utility by spending all its money to purchase and consume a combination of goods which yields: (1) Fundamental physiological requirements and customary wants. (2) Maximum status and the social prestige. (3) Complete satisfaction of al

  • Q : Problem on production function Consider

    Consider a model economy with a production function Y = K0.2(EL)0.8, where K is capital stock, L is labor input, and Y is output. The savings rate (s), which is defined as

  • Q : If households If households become more

    If households become more willing to hold less cash and more stocks or bonds, the

  • Q : Systems of note issue how many systems

    how many systems of note issue are there??

  • Q : Functions of central bank Describe

    Describe functions of central bank? Answer: (A) Issue of currency: Central bank is the only authority for the issue of currency

  • Q : Conditions through which the supply

    What are the conditions through which the supply curve will shift?

  • Q : Meaning of Cash Reserve Ratio or CRR

    Meaning of Cash Reserve Ratio (CRR): It is the percentage of net or total deposits of commercial bank that are maintained by RBI.

  • Q : Role of price in market economies What

    What is the role of price in market economies?

  • Q : Market Supply versus Individual Supply

    What is the basic difference between Market Supply and Individual Supply?

  • Q : The failure of the Supercommittee

    Question: Some commentators have argued that the failure of the "Supercommittee" is good thing for the economy?  Do you argree? Answer:

    Discover Q & A

    Leading Solution Library
    Avail More Than 1435844 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads
    No hassle, Instant Access
    Start Discovering

    18,76,764

    1923434
    Asked

    3,689

    Active Tutors

    1435844

    Questions
    Answered

    Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

    Submit Assignment

    ©TutorsGlobe All rights reserved 2022-2023.