Advertisement Remove all ads

Giving Reason Explain How Should the Following Be Treated in Estimating National Income: I. Expenditure on Fertilizers by a Farmer. Ii. Purchase of Tractor by a Farmer. - Economics

Advertisement Remove all ads
Advertisement Remove all ads
Advertisement Remove all ads

Giving reason explain how should the following be treated in estimating national income:

i. Expenditure on fertilizers by a farmer.
ii. Purchase of tractor by a farmer.

Advertisement Remove all ads

Solution

i. Expenditure on fertilisers by a farmer will not be included in the estimation of National Income because it is an intermediate consumption to improve crop productivity.

ii. Purchase of a tractor by a farmer will be included in the estimation of National Income because it is part of gross domestic capital formation.

Concept: Concept of National Income
  Is there an error in this question or solution?
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×