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Giving reason, explain how the following should be treated while estimating national income: 

(i) Free medical facilities by the employer. 

(ii) Contribution to provident fund by employees.

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Reasons : 

(i) Free medical facilities by the employer are included in the estimation of national income because it is a kind of wages in kind and therefore, a part of the compensation of employees. 

(ii) Contribution to the provident fund by the employees is an integral component of income. It is paid out of income. It is, therefore, not separately added in the estimation of national income.

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