--%>

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 : Business fixed investment-Inventory

    Describe the following terms: (i) Business fixed investment (ii) Inventory Investment (iii) Residential construction Investment (iv) Public Investment.

  • Q : Market system The market system's

    The market system's answer to the fundamental question "How will the system promote progress?" is essentially:

  • Q : One party to a transaction deceives

    If one party to a transaction deceives another party prior to a deal be reached, this is termed as: (i) Bad luck. (ii) Adverse selection. (iii) Moral hazard. (iv) Polyandry. (v) Rational ignorance. Please someone suggest me the rig

  • Q : Positional Goods problem Can someone

    Can someone help me in finding out the right answer from the given options. In accord with the theories of Thorstein Veblen, the positional goods from which the owner or user of the good derives the jollies mainly since of the power, class and status signaled by the p

  • Q : Limitation of credit availability What

    What occurs to economy, when credit availability is limited and credit is made costlier? Answer: Aggregate demands falls

  • Q : Equilibrium The equilibrium interest

    The equilibrium interest rate is determined

  • Q : Liability of tax problem If the

    If the liability to give a tax is on one person and the burden of tax fall on some other person, state the kind of tax? Answer: These are indirect taxes like sales

  • Q : Describe open market operations

    Describe open market operations? What is its consequence on availability of credit? Answer: Open market operations signify the purchase and sale of government secur

  • Q : Article on Agriculture and economic

    Read the article on blackboard in the assignments area, John McCallum "Agriculture and economic development in Ontario and Quebec until 1870", Gordon Laxer, ed. Perspectives on Canadian Economic Development: Class, Staples, Gender and Elites (Toronto: Oxford Universit

  • Q : Define Macro Economics Macro Economics

    Macro Economics: Macro economics studies the economy as an entire.