Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
727 views
in Economics by (76.1k points)

Giving reason explain how should the following be treated in estimating GDP mp.

1 Answer

+1 vote
by (74.3k points)
selected by
 
Best answer

(i) Fee to mechanic paid by a firm :- Considered as factor income, so included. 

(ii) interest paid by an individual on car loan from a bank: Not Included- because the individual borrows for consumption and not for production. 

(iii) interest on purchasing a car for use by a firm: Treated as factor payment by the firm because the firm borrows money for carrying out production and therefore included in National Income. 

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...