Question

State whether the following is True or False. Give a reason.

Money received by an Indian cricketer as Man of the Match does not contribute to the National Income of India.

Answer 1

This statement is true.

Reason:

When an Indian bowler wins the Man of the Match award, the prize money does not contribute to the country’s national income because it is a transfer payment. The value of the things and services made in a country is what national income accounts are all about. Transfer payments, such as prizes, grants, or subsidies, do not reflect production.