Giving reason explain how should the following be treated in estimating national income: |
(i) Payment of bonus by a firm |
(ii) Payment of interest on a loan taken by an employee from the employer. |
Answer:
(i) Payment of bonus by a firm: Payment of bonus by a firm should be included in the national income because it is a part of the compensation of employees (while estimating National Income by Income Method). (ii) Payment of interest on loan taken by employee from the employer: Payment of interest on loan taken by employee from the employer should be included in the national income because it is a part of operating surplus (while estimating National Income by Income Method).
You need to login to perform this action.
You will be redirected in
3 sec