Give an idea about the incomes that are considered while calculating t

1.	Give an idea about the incomes that are considered while calculating the national income with production method.
Answer» Incomes that are considered: 1. Selection of goods or services: Value of only finished goods and services produced in the economy is considered i.e. value of goods and services still in the process of production are not calculated. 2. Imputed rent: Those who live in their own house do not need to pay rent. This benefit of rent that they get is a part of their income and is called imputed rent. Here we assume that if the house is given to someone on rent it can earn rental income and so that value is considered in national income. 3. Export: Value of total export is added.

Give an idea about the incomes that are considered while calculating the national income with production method.

Answer»

Incomes that are considered:

1. Selection of goods or services:

Value of only finished goods and services produced in the economy is considered i.e. value of goods and services still in the process of production are not calculated.

2. Imputed rent:

Those who live in their own house do not need to pay rent. This benefit of rent that they get is a part of their income and is called imputed rent.
Here we assume that if the house is given to someone on rent it can earn rental income and so that value is considered in national income.

3. Export:

Value of total export is added.

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Give an idea about the incomes that are considered while calculating the national income with production method.

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