Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Why is the brokerage paid to the broker during the sale and purchase of shares is included in national income?

Options:

Because It is part of compensation to employees

Because sale and purchase of shares is added

Because brokerage adds to the corresponding flow of goods and service 

Because we include this in operating surplus

Correct Answer:

Because brokerage adds to the corresponding flow of goods and service 

Explanation:

Services rendered by the broker is productive in nature i.e. they add to the flow of goods and services in the economy. Thus, we include it while calculating the national income. Although, sale of shares itself is not included while calculating the national income.