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From which aggregate is Private Income derived by deducting government income and adding transfer payments?

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Question

From which aggregate is Private Income derived by deducting government income and adding transfer payments?

Options

  • Domestic Income

  • Social securities

  • NNP at Factor Cost

  • Government income

MCQ
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Solution

Private Income can be derived from NNP at Factor Cost. Government income is deducted, while transfer payments accruing to the private sector are added.

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