Question

↵how should the following be treated in estimating national income of a country. give reasons.

• taking care of aged parents
• payment of corporate tax
• expenditure on providing police services by the government.

Answer 1

↵Hey Rashmi,

1. Taking care of aged parents is not included in national income as it does not involve production of goods and services.
2. Payment of corporate tax is included in national income as it is a part of corporate profit.
3. Expenditure on providing police services by the government is included in national income as it forms a part of government final expenditure.

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