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    Question

    Which of the following transaction is being ignored while calculating national income?

    A Sales of a firm Correct Answer Incorrect Answer
    B Salary of employees Correct Answer Incorrect Answer
    C Exports of the IT sector Correct Answer Incorrect Answer
    D Profit on sale of land Correct Answer Incorrect Answer

    Solution

    While computing national income using the income approach, transfer payments such as gifts and donations and profits from the sale of pre-owned goods are excluded. As such sale of land or sale of shares and debentures is not considered while calculating national income.

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