Question

What is one purpose of Private Income?

Options

• It measures only Government property & entrepreneurial income

• It measures only profits & surpluses of public undertakings

• It partitions transfer payments between domestic income and national income

• It partitions national income between the private sector and the government sector

Answer 1

Private Income separates the part of national income accruing to the private sector from the part accruing to the government sector. This partition is useful for sector-wise income assessment.