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Q: In this question, two statements are given, the first of which is Assertion (A) and the second is Reason (R). Use them to choose the right option. Assertion (A) : While estimating national income, packet money given by parents is included. Reason (R) : It represents transfer of payments from parents to children.
  • A. A is true, and R is false
  • B. Both A and R are true, but R is not the correct explanation of A.
  • C. A is false and R is true.
  • D. Both A and R are, true, but R is the correct explanation of A.
Correct Answer: Option C - National Income is the value of goods and services produced by a country during a financial year. It is the sum of total income of individuals, families, firms and industries. National income does not include pocket money given by parents. National Income includes; Wages, Interest, Rent, Profits received from various factors of production and net income received from abroad.
C. National Income is the value of goods and services produced by a country during a financial year. It is the sum of total income of individuals, families, firms and industries. National income does not include pocket money given by parents. National Income includes; Wages, Interest, Rent, Profits received from various factors of production and net income received from abroad.

Explanations:

National Income is the value of goods and services produced by a country during a financial year. It is the sum of total income of individuals, families, firms and industries. National income does not include pocket money given by parents. National Income includes; Wages, Interest, Rent, Profits received from various factors of production and net income received from abroad.