Question

Will the following be included in the national income of a country? Give a reason for your answer:

School fee paid by students

Answer 1

Yes, the school fees paid by students will be included in the national income because they represent an expenditure on education services, which are final services provided by schools and educational institutions. Since this payment is made in exchange for a productive service rendered in the current year, it is considered a part of the current flow of goods and services and therefore included in the national income.