Question:
Which of the following items is not included when estimating Gross National Income by income method?
(1) Compensation of employees
(2) Mixed income
(3) Consumption of fixed capital
(4) Other taxes less subsidies on production
(5) Employee contribution to Employee’s Provident Fund
Correct Answer:
(5)
Answer Explanation:
The ‘Compensation of Employees’ category already includes gross wages and salaries, which encompasses the employee’s contribution to the EPF. Adding it again separately would result in double counting.
Topic: National Income Year: 2021
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