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State any 6 precautions which must …

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State any 6 precautions which must be taken while estimating factor income

Posted by Manav Sharma 5 years, 3 months ago

CBSE > Class 12 > Economics

1 answers

Ishu Bansal 5 years, 2 months ago

Ans. 1. Transfer payments are not included in estimating national income 2. Imputed rent of self occupied houses are to be included in calculating national income 3. Illegal money through smuggling etc. are not included as they cannot be easily estimated 4. Windfall gains are not included in this method 5. Indirect taxes are not included while estimating national income at factor cost 6. Income equal to the value of production for self consumption should be estimated and included in the measure national income

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