Only transactions that reflect current production of goods and services are included in national income calculations (using methods like the production method, income method, or expenditure method). Sales of existing assets (like second-hand goods, land, shares) are excluded. However, any value added by intermediaries facilitating the sale (e.g., commission paid to a dealer) would be included as it represents a service produced in the current period.
Which of the following items does not come under National Income measurement?
Asked in WBCS Main Paper 5 2021 · Topic: National Income & Gross Domestic Product (Methods of National Income Estimation: Income, Expenditure, and Production/Value Added Methods)
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Answer: B. Receipt from second hand sale of an auto‐ mobile.
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