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+1 vote
39.9k views
in Economics by (52.9k points)
How should the following be treated while estimating national income ? You must give reason in support of your answer :

(i) Bonus paid to employees.

(ii) Addition to stocks during a year.

(iii) Purchase of taxi car by a taxi driver.

1 Answer

+1 vote
by (30.2k points)
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Best answer

Reasons:

(i) Bonus - It should be included because it is compensation paid to employees.

(ii) Addition to stock - It should also be included because it is an investment, a final expenditure.

(iii) Purchase of a Taxi by Taxi Driver - It should be included because it is final expenditure on investment.

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