Consider the following statements relating to estimation of National Income : 1. Foreigners working in Indian Embassies are normal residents of India. 2. Foreigners working in the office of WHO, World Bank, UNO etc. located in India are not normal residen

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Q: 92 (CDS-II/2010)
Consider the following statements relating to estimation of National Income :
1. Foreigners working in Indian Embassies are normal residents of India.
2. Foreigners working in the office of WHO, World Bank, UNO etc. located in India are not normal residents of India. ’
3. Indians working in foreign embassies in India are not normal residents of India.
Which of the statements given above is/are correct ?

question_subject: 

Economics

question_exam: 

CDS-II

stats: 

0,13,35,13,19,11,5

keywords: 

{'national income': [0, 2, 2, 4], 'foreigners': [1, 0, 2, 4], 'normal residents': [0, 0, 1, 1], 'indian embassies': [0, 0, 1, 0], 'foreign embassies': [0, 0, 1, 0], 'estimation': [0, 0, 1, 3], 'india': [8, 1, 7, 13], 'indians': [8, 3, 13, 29]}

The correct answer is option 1: 1 only.

Let`s dissect each statement to understand why.

Statement 1: Foreigners working in Indian embassies are normal residents of India. This statement is correct because when foreigners work in Indian embassies, they are considered normal residents of India for the purpose of estimating national income. This is because they reside and work in India.

Statement 2: Foreigners working in the office of WHO, World Bank, UNO, etc. located in India are not normal residents of India. This statement is incorrect. Foreigners working in these organizations located in India are also considered normal residents of India for the purpose of estimating national income. They reside and work in India.

Statement 3: Indians working in foreign embassies in India are not normal residents of India. This statement is not relevant to the estimation of national income. The focus of the question is on the residency status of foreigners.

Therefore, only statement 1 is correct.