Giving reasons, explain the treatment assigned to the following while estimating National Income. |
(i) Expenditure on maintenance of a building. |
(ii) Expenditure on adding a floor to the building. |
Answer:
(i) Expenditure on maintenance of a building will not be included in the National Income because it is not adding anything in capital formation. (ii) Expenditure on adding a floor to the building will be included in the National Income because it is a part of domestic capital formation.
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