National debt interest is a transfer payment. Interest on a household consumer loan and interest paid by an employee to employer are not factor incomes. Interest received on debentures of a firm is a factor payment for use of capital in production, hence included in national income.
Which of the following will be included in national income, while using the income method to calculate the same:- (Choose the correct option)
CUET UG 2022 — Economics Macro
2022mcqmedium
Which of the following will be included in national income, while using the income method to calculate the same:-
(Choose the correct option)
Official previous-year question
Verified 13 Jul 2026.
Options
- A
National debt interest.
- B
Interest paid on a loan taken by a household from a bank to buy a car.
- C
Interest received on debentures of a firm bought by a household
- D
Interest paid on a loan taken by a employee from his employer.
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