Giving reason, explain how should the following be treated in estimating gross domestic product at Market Price.

Compensation of Employees => (ii) + (x) = 1800 + 200 = 2,000 Operating Surplus = (i) + (iii) + (vi) + (viii) => 6,000 + 400 + 120 + 80 = 6,600 Mixed Incom....

When a domestic product is valued at current prices it is called nominal domestic product and when it is valued at base year prices it is called Real Domestic Product. Real Domestic...

To calculate, GDPMP by, the expenditure method, we add up final expenditure on the goods and services produced by all the economic sectors of an economy. Expenditures incurred on consumption...

 Reasons :  (i) Expenditure on Fertilizers-It is intermediate cost for the farmer and deducted from the value of output while arriving at National income, Therefore, not included. (ii) Purchase of Tractor-lt is included...

Reasons:  (i) Payment of Bonus- It will be included in national income as it is a part of the compensation of employees.  (ii) Payment of Interest-lt will not be included in the national...

Reasons:  (i) Interest paid by Banks-It will be included as it is a factor income.  (ii) National Debt Interest-It will not be included as it is assumed that Government borrows for consumption...

Reasons:  (i) Payment of excise duty only increases the market value of final goods and services. Therefore, this is not included in the estimation of national income.  (ii) Payment of interest by...

Reasons :  (i) Free medical facilities by the employer are included in the estimation of national income because it is a kind of wages in kind and therefore, a part of...

Reasons: (i) Bonus - It should be included because it is compensation paid to employees. (ii) Addition to stock - It should also be included because it is an investment, a final...

Reason: (i) Included in National Income because it results in inflows of income through productive activities. (ii) It is not included in the national income because it is a transfer payment. (iii) It...