Multiple choice

In calculating National Income which of the following is included?

  1. Services of housewives

  2. Pensions

  3. Income of smugglers

  4. Income of watchmen
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B Correct answer
Explanation

Pensions are included in National Income calculations as they represent transfer payments from one section of society to another. While transfer payments don't create new goods or services, they are part of the national income accounting system. Services of housewives, smugglers' income, and watchmen's income are excluded for various reasons - some being non-market activities or illegal.

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