Is value of wood purchased for manufacturing a table included/excluded in National Income?
Is value of wood purchased for manufacturing a table included/excluded in National Income?
Anurag Pathak Changed status to publish December 8, 2023
No,
value of wood purchased for manufacturing a table will not be included in the national income as it is a part of intermediate consumption expenditure.
Explanation:-
National Income only counts the value of final goods.
The value of wood is already included in the value of the table manufactured.
If the value of wood is added to the national income, it will lead to double counting.
Thus, the value of wood purchased is considered as intermediate consumption and will not be included in the national income.
Anurag Pathak Changed status to publish December 8, 2023
