Question

Services of housewives are included in national income. (State whether the statement is TRUE or FALSE)

Answer 1

Answer:

False

Explanation:

Services of housewives are included in national income. - False

Money value of the goods and services generated during the financial year in a nation. In other words, as a national income, the final outcome of all the nation's economic activities over a period of one year, valued in terms of money, is called. The housewives services are not included in the national income because the market value of such a service is hard to assess.

Answer 2

Answer:

False.

Explanation:

The services of housewives are not included in national income. Calculation of GDP involves the summation of value added at each stage of production or any process. It is very difficult to quantify each of the activity and thus it goes unreported in the accounting framework of the System of National Accounts (sna) goods and services produced by households for their own consumption are excluded in the estimation of GDP.

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