Free services provided by the government will not be included in national income.
True or False with Reasons
Free services provided by the government will not be included in national income.
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False,
Such services will be included in national income as they are part of the Government Final Consumption Expenditure.
Explanation:-
Government works for the welfare of the society. The market value of all free services contributed by the government can be estimated.
Thus, such services are a part of Government Final Consumption Expenditure and is included in national income through the Expenditure Method.
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