Question:
What is not included in the measurement of Gross National Income (GNI)?
(1) Financial benefits paid to the unemployed
(2) Dividends paid to shareholders
(3) Profits retained by companies
(4) Rent paid to landlords
(5) Property incomes paid to resource owners
Correct Answer:
(1)
Answer Explanation:
GNI measures the total income earned by a nation’s residents in return for their contribution to production. Financial benefits paid to the unemployed (like unemployment welfare) are “transfer payments.” They are transfers of existing wealth by the government, not income earned from current production, so they are excluded.
Topic: National Income Year: 2018
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