How are the following treated while estimating private final consumption expenditure ? Give reasons for you answer. (i) Exports. (ii) Direct purchases made abroad by resident households. (iii) Final consumption expenditure of non-profit institutions serving households. (iv) Change in stocks.

How are the following treated while estimating private final consumpti

1.	How are the following treated while estimating private final consumption expenditure ? Give reasons for you answer. (i) Exports. (ii) Direct purchases made abroad by resident households. (iii) Final consumption expenditure of non-profit institutions serving households. (iv) Change in stocks.
Answer» (i) Exports will not be included in private final consumption expenditure as exports do not reflect consumption expenditure by residents. (ii) It will be included in private final consumption expenditure as such purchases are meant for consumption. (iii) It will be included in private final consumption expenditure as non-profit institutions serving households are a component of household sector. (iv) It will not be included in private final consumption expenditure as it is a component of capital formation.