Free samples distributed by a business enterprise for advertisement will not be included in national income
True or False with Reasons
Free samples distributed by a business enterprise for advertisement will not be included in national income.
Anurag Pathak Changed status to publish
True,
Such free samples are part of intermediate consumption expenditure. Thus it will not be included in the national income.
Explanation:-
National Income only counts the value of final goods.
The cost of free samples is the intermediate cost and is added to the value of final goods.
If the value of free samples is added. It will lead to the double counting.
Anurag Pathak Changed status to publish
