National Income — Economics STD 12 — Question

Precautions:
1.Second hand goods:
The expenditure made on second hand goods should not be included.
2.Purchase of shares and bonds:
Expenditures on purchase of old shares and bonds in the secondary market should not be included.
3.Transfer payments:
Expenditures towards payment incurred by the government like old age pension should not be included.
4.Expenditure on intermediate goods:
Expenditure on seeds and fertilizers by farmers, cotton and yam by textile industries are not to be included to avoid double counting. That is only expenditure on final products are to be included.