1.

State whether each of the items given below is included in estimating National Income. Give a reason in each case to justify your answer. (a) Expenditure on the construction of Express Highway. (b) Expenditure on the purchase of an old house.

Answer»

(a) It is included. This is because it is a part of the final investment expenditure. 

(b) It is not included. This is because National income measures the value of currently produced goods and services Purchase of an old house is already included during the first rime.



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