--%>

Problem on National income

Providing reasons, describe the treatment assigned to the following which estimates national income.

(i) Family members working freely on farm owned by family.
(ii) The Payment of interest on borrowings through general government.

E

Expert

Verified

(i) Imputed salaries of such members will be comprised in national income.

(ii) This will not be comprised in national income since it is non-factor payment as the general government borrows just for consumption purpose.

   Related Questions in Financial Accounting

  • Q : Legal Reasoning and Writing This

      This exercise does not require you to do any research, and does not require you to cite to any references or external materials.  Do not include any constitutional arguments. Like many legal and policy questions

  • Q : Define deviance Define deviance ; give

    Define deviance; give three illustrations of deviant behavior and use them to explain why deviance is socially constructed.

  • Q : Types of fixed asset in accounting How

    How many kinds of fixed asset are there in accounting? What are they?

  • Q : Why teaching of accounting is not simple

    Why teaching of accounting is not simple. Illustrate this statement.

  • Q : Objective Questions on Sociology 1)

    1) Which large European city declined significantly in population over the past century? A) Paris B) London C) Rome D) Madrid 2) The industrial city was characterized b A) decentralization B) corporate growt

  • Q : Computing cross-rate matrix Compute

    Compute cross-rate matrix for French franc, Japanese yen, German mark, and the British pound. Utilize most recent European term quotes in order to compute the cross-rates in order that the triangular matrix result is same as that of the portion above diagonal in Exhib

  • Q : What do you mean by the term Equity

    What do you mean by the term Equity. Briefly explain it.

  • Q : Firm cross-listed on foreign stock

    Explain why and how a firm’s capital cost can be reduced when stock of firm is cross-listed on foreign stock exchanges.

  • Q : Find the expected dividend for each of

    Suppose a firm's common stock paid a dividend of $1.75 yesterday. You expect the dividend to grow at the rate of 8% per year for the next 3 years, if you buy the stock, you plan to hold it for 3 years and then sell it.

    Q : What is the equivalent rate A bank

    A bank quotes an interest rate of 13.5% per annum with quarterly compounding. What is the equivalent rate with (a) continuous compounding and (b) annual compounding?