Explain with reasons whether the following will or will not be included in National Income:-
Subsidy on the output produced.
Dear student,
Subsidies means all grants on current account made by government to household and business sector. It also includes grants of public corporations for meeting operating losses. Subsidy reduce the price of the commodity in the market. It is a transfer income for which no efforts or service is provided therefore it will not be included in the National income.
Regards
Subsidies means all grants on current account made by government to household and business sector. It also includes grants of public corporations for meeting operating losses. Subsidy reduce the price of the commodity in the market. It is a transfer income for which no efforts or service is provided therefore it will not be included in the National income.
Regards