Giving reason, explain how should the following be treated in estimating National Income: (i) Electricity consumed by a firm.
Giving reason, explain how should the following be treated in estimating National Income:
(i) Electricity consumed by a firm.
(ii) Pension paid to retired employees.
(iii) Free treatment of the poor in hospitals.
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Reason:
(i) Included in National Income because it results in inflows of income through productive activities.
(ii) It is not included in the national income because it is a transfer payment.
(iii) It is not included in national income because it is unproductive.
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