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Question
Which of the following will be excluded when one calculating National Income through the Value Added Method?
Options
Intermediate Good
Services for self Consumption
Second-Hand Goods
All of the above.
MCQ
Solution
All of the above
Explanation:
Double counting will be a concern with intermediate and secondhand goods. Self-consumption is not included in the calculation of National Income because no value is added to it.
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Methods of Calculating National Income - Value Added Or Product Method
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