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
+1 vote
9.6k views
in Economics by (52.9k points)

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

1 Answer

+1 vote
by (30.2k points)
selected by
 
Best 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.

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

...