How will you treat the following while estimating National Income? Give reasons for your answer.
(i) Capital gain on sale of a house.
(ii) Prize won in a lottery.
(iii) Interest on public debt.
(i) Capital gain on sale of a house is not included in the National Income estimation because it does not add to the flow of goods and services in the economy.
(ii) Prize won in a lottery is not included in National Income estimation because it is a part of transfer payments.
(iii) Interest on public debt is deemed as transfer payment. Hence, not. included in the estimation of National Income.