Question

Giving reason, state whether the following is included in national income:

Gift received from employer.

Answer 1

• Yes, gifts received from an employer are included in the national income.
• This is because gifts from an employer to an employee are considered part of compensation for services rendered.
• They are a form of factor income (like wages or salaries) and thus are a payment for productive work done by the employee.
• Since national income includes all factor incomes earned for productive activities during a year, gifts received from an employer are counted in national income.