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    Question

    Why are windfall gains not included while calculating

    national income?
    A There is value addition Correct Answer Incorrect Answer
    B It has already been included Correct Answer Incorrect Answer
    C There is no income Correct Answer Incorrect Answer
    D There is no productive activity connected with them Correct Answer Incorrect Answer

    Solution

    Windfall gains are unexpected, unearned income such as lottery winnings or sudden profits from stock price increases that are not associated with any productive economic activity. National income calculations focus on income generated through the production of goods and services. Since windfall gains do not result from productive economic activities that create value in the economy, they are excluded from national income measurements. Only income derived from wages, rents, interest, and profits earned through actual productive activities is included in national income calculations.

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