Payment given to a lawyer by a firm, goods purchased by NRI in India and depreciation are included in national income or not? Give reasons.
Answers
Answer:
Yes, it will be included in the national income as it is a part of the factor income from abroad. 9. Payment of fees to a lawyer engaged by a firm. It is an intermediate expenditure for the firm because it involves purchase of services by one production unit (firm) from another production unit (lawyer
Explanation:
Yes, it will be included in the national income as it is a part of the factor income from abroad. 9. Payment of fees to a lawyer engaged by a firm. It is an intermediate expenditure for the firm because it involves purchase of services by one production unit (firm) from another production unit (lawyer)
(i) Purchase of a second hand machine from a domestic firm. (ii) Interest received on loans taken by government. (iii) Leave travel allowance paid to employees by a company. (iv) Direct purchases made by resident households.