Question

what are the precautions to be observed while measuring national income by income method​

Answer 1

Answer:

For correct computation of national income by income method, following precautions need to be taken: (i) Only factor incomes which are earned by rendering productive services are included. All types of transfer income like old-age pension, unemployment allowance, etc. are excluded.

hope it helps.

give thanks

follow me on brainly

Answer 2

PRECAUTIONS TO BE TAKEN

1. Transfer payments are not included in estimating national income.

2. Imputed rent of self-occupied houses are to be included in calculating national income.

3. Illegal money through smuggling etc. are not included as they cannot be easily estimated.

4. Income equal to the value of Production for self-consumption should be estimated and included in the measure of national income

MARK IT AS BRAINLIEST