Question

24, Explain four main precautions that should be taken while estimating national
income by expenditure method.

​

Answer 1

•Expenditure on only final goods and services should be included in the national income estimation while intermediate consumption expenditure should not be included.

•Similarly, expenditure on the purchase of second hand goods should not be included in the national income estimation of the current accounting year.

•Expenditure on shares and bonds is not included. This is because these are mere financial assets and do not reflect any production activity of the goods or services.

• Imputed value of the goods and services produced for self consumption are included.

I hope my answer is helpful for you

Answer 2

Answer:

ohk....................