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Question : Which of the following are the precautions of value added method?

Option 1: Sale and purchase of second hand goods is excluded.

Option 2: Production of service for self consumption or not included. (Housewives, etc.)

Option 3: Production of goods for self consumption will be included.

Option 4: All of the above.


Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 17th Jan, 2024

Correct Answer: All of the above.


Solution :

The precautions while calculating value added method includes-
  1. Intermediate goods or not to be included in the national income.
  2. Change the stock of goods will be included.
  3. Imputed value of owners occupied houses should be included.
  4. Sale and purchase of second hand goods is excluded.
  5. Production of service for self consumption or not included. (Housewives, etc.)
  6. Production of goods for self consumption will be included.
Hence, Option D is correct.

Hence, Option D is correct.

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