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Transactions excluded in computing national income
1. Transfer payments
This is the money that is charged when a transaction is made.
2. Lottery
The money that is won in lottery games is not computed in measuring national income
3. Pension
The money earned after retirement.
4. Grants
Money given for good will purposes.
These transfer incomes if included may lead to double counting since they are earned for purposes other than producing goods and services.
Aeren answered the question on June 20, 2018 at 11:04
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