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CBSE 2017 Class 12 Economics Delhi Set-1
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Question : 16 of 18
Marks:
+1,
-0
How will you treat the following while estimating domestic product of a country ? Give reasons for your answer: (a) Profits earned by branches of country's bank in other countries (b) Gifts given by an employer to his employees on independence day (c) Purchase of goods by foreign tourists
Solution:
(a) Not included in domestic income as it is earned outside the domestic territory of the country. (b) Not included as it is a transfer payment. (c) Included as the expenditure is done within the domestic territory.
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