Which of the following is not an economic activity and not included in national income? Medical services rendered by a dispensaryA housewife doing household workA lawyer doing his practiceA maid working full time with a family (2024)

FAQs

Which of the following is not an economic activity? ›

The Correct answer is Voluntary Social Service. Voluntary social service is not typically considered an economic activity. Economic activities typically involve the production, distribution, or consumption of goods and services in exchange for monetary value.

Only those economic activity is included in national income which can be measured and estimated in terms of money. A housewife doing household work is not included in national income because the service by a housewife cannot be estimated in monetary terms. Was this answer helpful?

National income doesn't include interest on the unproductive national debt. National income defines the value of goods and services produced by any country in the period of a financial year. Thus, it is the net output of all economic works of any country during a period of 12 months and is valued in terms of money.

On the other hand, any activities which do not have any monetary motive and are performed with a feeling of love, sympathy, humanity, are known as non-economic activities. For example, playing in a garden, dancing, housewife cooking dinner for the family, or a boy helping an old man crossing a road, etc.

The four essential economic activities are resource management, the production of goods and services, the distribution of goods and services, and the consumption of goods and services. As you work through this book, you will learn in detail about how economists analyze each of these areas of activity.

The correct answer is money. Money is not considered an economic resource by economists because it i...

The correct answer is geographical conditions. Economic development is the process of change over a long period of time.

Unemployment is studied under Macroeconomics. Hence Option 4 is Correct. Microeconomics is the study of individuals and business decisions, while macroeconomics looks at the decisions of countries and governments.

For example, unpaid work (such as that performed in the home or by volunteers) and black-market activities are not included because they are difficult to measure and value accurately.

What are the main types of income included in national income? ›

Answer and Explanation: 1. The main types of income included in national income are: (C) employee compensation, corporate profits, self-employment income, rents, and interest.

GNI calculates the total income earned by a nation's people and businesses, including investment income, regardless of where it was earned. It also covers money received from abroad such as foreign investment and economic development aid.

Factors of National Income

GDP includes government expenditures, consumption, exports, imports, and investment of India. For example, if Honda decides to manufacture it's parted in India than that will go into the GDP of India.

What are the 4 main components of GDP? There are four main components of GDP; consumption, investment, government spending, and exports. Consumption is the largest component of GDP and is a measure of all spending by households on goods and services.

Economic activities refer to activities that generate income. Therefore, buying groceries, publishing a book, and investing fall under economic activities.

An economic activity takes place when resources such as capital goods, labour, manufacturing techniques or intermediary products are combined to produce specific goods or services. Thus, an economic activity is characterised by an input of resources, a production process and an output of products (goods or services).

Three types of economic activities are (1)Business (2)Profession (3)Employment. Ultimately, the primary goal of economic activity is to generate profit and thus accumulate wealth. Individuals participate in these activities in order to supplement their income through financial gain.

Economic activities may be further divided into three categories; namely business, profession and employment, e.g., a person running a garment business, a doctor operating in his clinic, and a teacher teaching in a school- all three are doing so to earn their livelihood and are, therefore, engaged in an economic ...