1.

Explain how the following are treated in estimating National Income:(i) Wheat grown by a farmer for self-consumption.(ii) Earnings of the shareholders from the sale of shares.(iii) Service rendered by family members to each other.

Answer»

 (i) Imputed value of what grown by farmer for self-consumption must be included.

(ii) Purchase or sale of financial assets like shares is not included while calculating national income.

(iii) Imputed value of self-consumed services rendered by family member to each other is not included in the national income.



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