"While estimating the national income, only the value of the final goods and services is used. Explainwith the help of an example.
Answers
Answered by
1
Answer:
While estimating the national income, only the value of the final goods and services is used.
It is so because, the final goods and services include the price of intermediary goods. The final goods are ready for consumption and thus, they are counted while estimating the national income.
Example:- Wheat is used for making flour and flour along with sugar and milk is used for making biscuits. So, the cost of the biscuits will be counted in the national income and not the price of wheat and flour.
Hope it helps:)
Explanation:
Similar questions