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National Income Accounting — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsNational Income Accounting6 Marks
Question
What precautions should be taken while estimating national income by expenditure method? Explain.
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Answer

  1. Expenditure on purchase of second hand goods should not to be included because the value of goods was counted when they were new.
  2. Imputed expenditure on own account output to be included because it results from production activity.
  3. Expenditure on financial assets should not be included because it does not lead to creation of any good or service.

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