Question

Which of the following incomes are included while estimating the national income by income methods?

Options

• Income in kind like part of the output produced for self-consumption

• Illegal incomes like income from illegal activities

• Income received from the sale of second-hand goods

• Transfer incomes

Answer 1

Income in kind like part of the output produced for self-consumption

Explanation:

Income in kind that has monetary value and is part of production, such as output used for self-consumption by farmers, is included in national income.