Question 16 (b) - CBSE Class 12 Sample Paper for 2023 Solutions - Economics - Solutions to CBSE Sample Paper - Economics Class 12

Last updated at April 16, 2024 by Teachoo

State and discuss any two precautions to be considered while estimating national income by Expenditure Method.

Answer:

Expenditure on second hand goods is not to be included in the final consumption expenditure as the production of these goods might not be attributed to the current year.
Expenditure on ‘intermediate goods’ are not to be taken into account, to avoid the problem of double counting of value of goods and services.

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Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years and a teacher from the past 18 years. He teaches Science, Economics, Accounting and English at Teachoo

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