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How should the following be treated in estimating national income of a country ? You must give reasons for Your answer. (i) Taking care of aged parents.(ii) Payment of corporate tax.(iii) Expenditure on providing police services by the Government |
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Answer» Reasons: (i) Taking care of aged parents - Should be included because it is a productive service rendered to the parents. (ii) Payments of Corporation Tax - Should not be included because any tax payments is a transfer payment as no good or service is provided in return. (iii) Expenditure on Providing Police Service by Government - Should be included because expenditure on any free service provided by the government is government's final consumption expenditure. |
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