Question

Why is Government property & entrepreneurship income deducted from National Income in calculating Private Income?

Options

• It belongs to the government sector, not the private sector

• It is an inflow from the rest of the world

• It is retained profits of private firms

• It is a transfer payment from government to private sector

Answer 1

Government property & entrepreneurship income belongs to the government sector. Therefore, it is not included in income accruing to the private sector.