Question

what precaution should be taken while estimating total production

Answer 1

1.Production for self consumption.
2.Imputed rental value.
3.Sell price of second hand goods.
4.Value of own account production.
5.Services of house wives.
6.Value of intermediate goods.
7.Commision of brokers.

Answer 2

Precautions taken while estimating total production are:
1.       Impute the rent of owner’s occupied houses.


2.    Impute the value of goods and services that are manufactured for free distribution or self-consumption.


3.       Impute the value of fixed assets of own account production by household, government and enterprises.


4.       Value of output produced by production unit should not be added.


5.       Anything that is not freshly produced is not added, example: sale of second hand goods.


Brokerage and commission paid to promote sale are added as they are freshly produced activity