Renu paid ₹ 500 for her chest *X’ ray in $ private hospital and for the same ‘X’ ray she paid ₹ 50 in government hospital.

Question

Identify and Explain the following concept:

Renu paid ₹ 500 for her chest *X’ ray in $ private hospital and for the same ‘X’ ray she paid ₹ 50 in government hospital.

Answer 1

Concept: Valuation of government services. 

Explanation : The government provides various services lower than market price. So it is difficult to get real value of these while estimating NI.