why does expenditure on maintanence of fixed assets not included in calculation of national income
does expenditure buying and fixing a new fan in an already existing room will be included in national income

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Solution

Expenditure on maintenance of fixed assets is not included in national income because it does not add to the flow of production and income in the economy.
Yes, the expenditure on purchasing a new fan will be included in the national income.

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Which of the following is not included in expenditure method of calculating national income?

Q. Whether the following items will be included in National Income?
(i) Purchase of books by a student.
(ii) Bonus to employees.
(iii) interest paid by an individual on loan taken.
(iv) Expenditure on repair of fixed capital asset.
(v) Free medical facilities by the employer.

(a) Define GNP at MP.

(b) Calculate National Income by Income and Expenditure methods.

$\begin{matrix} Items & (Rs. in crores) (i) & Rent & 1, 500 (i i) & Net factor income from abroad & 50 (i i i) & Wages and salaries & 25, 000 (i v) & Indirect tax & 1, 000 (v) & Government final consumption expenditure & 11, 200 (v i) & Subsidies & 300 (v i i) & Royalty & 200 (v i i i) & Net exports & (-) 200 (i x) & Interest & 6, 400 (x) & Corporate tax & 200 (x i) & Profit after tax & 4, 000 (x i i) & Households final consumption expenditure & 26, 000 (x i i) & Change in stock & 100 (x i v) & Net domestic fixed capital formation & 600 (x v) & Final consumption expenditure of private non-profit institutions serving households & 300 \end{matrix}$

Which of the following will be included in national income?

(a) Renovation of a residential building

(b) Repair and maintenance of residential building

Q. The expenditure method of estimating national income includes ___________.

Consider the following statements: -

1. National disposable income includes Net National Product at Market prices only.

2. GDP is a measure of National Income/ National output and National expenditure produced in a particular country.

3. GNP includes the value of all goods and services produced by nationals whether in the country a abroad.

4. GNP does not include dividends and interest from abroad in Income.

Which of the above statements is are correct?

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why does expenditure on maintanence of fixed assets not included in calculation of national incomedoes expenditure buying and fixing a new fan in an already existing room will be included in national income

Expenditure on maintenance of fixed assets is not included in national income because it does not add to the flow of production and income in the economy.Yes, the expenditure on purchasing a new fan will be included in the national income.

why does expenditure on maintanence of fixed assets not included in calculation of national income
does expenditure buying and fixing a new fan in an already existing room will be included in national income

Expenditure on maintenance of fixed assets is not included in national income because it does not add to the flow of production and income in the economy.
Yes, the expenditure on purchasing a new fan will be included in the national income.