ECONOMICS QUIZ

TrEatment of BONUS paid to employees in national income/ domestic income

• Not included as it is transfer payment

• Included as it is part of compensation of employees

• Included as it is within domestic territory

• None of these

Treatment of purchase of refrigerator by a firm for own use in NI / DI

• Included as it a final producer capital good

• Not included as it is a final consumer good

• Included as it is a resident firm

• None of these

Treatment of purchase of chalks by school in domestic/ national income

• Not included as it is an intermediate good

• Included as it is a final good

• Not included as it is a consumer good

• None of these

Treatment of profits earned by branches of INDIAN bank in other country in domestic income of India

• Included as it is resident bank

• Not included as bank is not in domestic territory of India

• Included as profit is part of operating surplus

• None of these

Treatment of salaries of Indian working in American embassy in India

• Included in national income as indian is normal resident of India

• Not included in domestic territory as American embassy is not part of domestic territory of India

• Included as salaries is part of Compensation of employees

• None of the these

scholarship given to a student is not included because:-

• It is a intermediate cost

• It is a service for self consumption

• It is a transfer payment

• None of these

Treatment of interest on loan taken by an individual for car

• Included as it is meant for production

• Included because it is final expenditure

• Not included as it is meant for consumption purpose

• None of these

Treatment of school fees paid by student

• included as it is part of private final consumption exp

• Included as it is investment exp

• Not included as it is a transfer payment

• None of these

Treatment of profits of a flight of spice jet between new york and london in domestic territory

• Included as it is within domestic territory of india

• Not included as this flight is not part of domestic territory of India

• none of these

Treatment of expenditure done on adding floor to a house in NI/ DI

• Not included as it is intermediate cost

• Included as it is part of gross domestic capital formation

• Included as it within domestic territory of country

• None if these