Which of the following is included in the estimation of National Income?

Expenditure incurred by a household on goods and services

1. Sugar purchased by a restaurant:

   • Excluded: This represents consumption by a business entity (restaurant) and falls under intermediate consumption. It is not included in National Income because it is part of the production process and does not contribute to the net value of goods and services produced.

2. Expenditure incurred by a household on goods and services:

   • Included: Household expenditure on goods and services is included in the National Income calculation.

3. Contribution towards social security scheme by an employee:

   • Excluded: Social security contribution by the employee is not separately included in the estimation of national income as these are paid out of compensation of employees. Social security contribution by employer is only included in the income method of national income.

4. Steel purchased by a car manufacturing company:

   • Excluded: This represents intermediate consumption by a business entity (car manufacturing company) and is part of the production process. It is not included in National Income because it does not contribute directly to the final output; it's used in the production of another good (cars).

Thus the correct answer is option 2: Expenditure incurred by a household on goods and services