Question

discuss any four precautions that should be taken while estimating national income by income method ​

Answer 1

(i) Transfer of payments should not be includes as there is no value addition in the economy. (ii) Capital gains from sale of old goods should not be included. (iii) Commission etc of brokers on sale of old goods should be included as these are reward for rendering factor services. (iv) Transaction in financial assets should not be included.

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