(i) Expenditure on free services provided by government. (ii) Payment of interest by a Government firm.
Giving reason, explain how should the following be treated while estimating national income:
(i) Expenditure on free services provided by government.
(ii) Payment of interest by a Government firm.
5 views
1 Answers
Reasons :
(i) Expenditure on free services provided by Government should be included in the estimation of national income because expenditure on these services is a part of Government Final Consumption Expenditure.
(ii) Payment of interest by a Government firm should be included while estimating national income because it is a kind of factor payment
5 views
Answered