Question

Are the following item included in the estimating a country’s national income? Give reason.

(a) free cloth given to workers.

(b) Commission paid to dealer in old car.

(c) Growing vegetable in a kitchen garden of the house.

Please help me guyzz​

Answer 1

Hey Mate !

1) Free cloth given to workers: free cloth given to worker is a part of wages in kind i.e. compensation to employee such compensation to employee is paid for the productive services in the economy, it is included in the national income.

2) Commission paid to dealer in old car: commission paid to dealer in old car is included in the estimation of national income because it is the income of the dealer for his productive services to various parties.

3) Growing vegetable in a kitchen garden of the house: growing vegetable in a kitchen garden of the house amount to production, though not for sale for self-consumption. It is included in the national income because it adds to the production of goods.

Hope It Helps u

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