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Give Reason Or Explain the Following Statement: Income from Second Hand Sale of Goods is Excluded from National Income. - Economics

Short Note

Give reason or explain the following statement:

Income from second hand sale of goods is excluded from national income.

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Solution

Income from the second hand sale of goods is not included in the national income of that current accounting year. This is because the value of these goods was included in the national income in the accounting year in which they were produced. Thus, if the value of these goods is also included in the current year, it will lead to the problem of double counting of the value of such goods.

Concept: Concept of National Income
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APPEARS IN

Micheal Vaz Economics HSC 12th Standard Maharashtra State Board
Chapter 9 National Income
Exercise | Q 2.1 | Page 79
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