Which of the following is an example of the 'other current transfers from the rest of the world' that are added to NNP at market prices to get National Disposable Income?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Aid received from a foreign government
Current transfers from the rest of the world are items like gifts and aid, received without any service in return. Aid from a foreign government is one.
Wages of Indians abroad and profits of foreign firms are factor incomes, part of net factor income from abroad. Export revenue is a sale of goods.
NCERT (2026-27): “National Disposable Income and Private Income Apart from these categories of aggregate macroeconomic variables, in India, a few other aggregate income categories are also used in National Income accounting “National Disposable Income and Private Income The idea behind National Disposable Income is that it gives an idea of what is the maximum amount of goods and services the domestic economy has at its disposal. Current transfers from the rest of the world include items such as gifts, aids, etc.” |