Giving reason, explain how the following are treated in estimating National Income:
(i) Wheat grown by farmer, but used entirely for family’s consumption.
(ii) Earning of shareholders from the sale of shares.
(iii) Expenditure by government on providing free education.
(i) Wheat grown by farmer, but used entirely for family’s consumption will be included while estimating National Income, as the production is done for self-consumption purpose.
(ii) Earning of shareholders from the sale of shares will not be included while estimating National Income, as it will be considered as transfer payment.
(iii) Expenditure by government on providing free education will be included while estimating National Income, as it is a part of government final consumption expenditure.