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
395 views
in National Income by (48.8k points)
closed by

Explain the Expenditure Method (Outlay Method) precautions?

1 Answer

+1 vote
by (49.7k points)
selected by
 
Best answer

Precautions:

1. Second hand goods: The expenditure made on second hand goods should not be included. 

2. Purchase of shares and bonds: Expenditures on purchase of old shares and bonds in the secondary market should not be included.

3. Transfer payments: Expenditures towards payment incurred by the government like old age pension should not be included. 

4. Expenditure on intermediate goods: Expenditure on seeds and fertilizers by farmers, cotton and yam by textile industries are not to be included to avoid double counting. That is only expenditure on final products are to be included.

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.

...