Sheena and Madhu were calculating India's national income with assumed figures. Both of them had an argument that whether Broker's commission, who deals with second hand goods, will be added or not in the national income. Madhu said that the broker's commission will be added but Sheena said it won't be added. According to you, who is correct?

Madhu is correct

The correct answer is Option 1: Madhu is correct

Madhu statement that broker's commission will be added while calculating national income is correct.

The reason behind the same is that sale and purchase of 2nd hand goods is not included in the calculation of national income, but broker's commission during the transaction will be added because service is being rendered by him which corresponds to the flow of goods and service.

Broker's commission, even when dealing with second-hand goods, is included in the calculation of national income.Here's why:

 a. National income considers income earned for providing productive services.
 b. A broker facilitates the buying and selling of goods, which is a service.
 c. The commission earned by the broker represents income generated through this service.