If stock at the end of the year is included in national income, which is under capital goods- final goods, then is a stock value of non-durable goods like wheat at the end of year included?
Dear Student,
Your question seems to be little bit unclear. Answer is given by taking assumption, that the non-durable good you are asking about is an intermediate good.
Only the value of final goods and services are included in the estimation of value added and the value of intermediate goods are not included in the national income. This is because the value of intermediate goods is already reflected in the value of final goods.
Link for detailed answer is hereunder. You can study under topic, Precautions regarding calculation of National Income. :
https://www.meritnation.com/cbse-class-12-commerce/economics/introductory-macroeconomics/national-income-accounting/studymaterial/59_16_341_1987_5834
Hope this helps!
Regards.
Your question seems to be little bit unclear. Answer is given by taking assumption, that the non-durable good you are asking about is an intermediate good.
Only the value of final goods and services are included in the estimation of value added and the value of intermediate goods are not included in the national income. This is because the value of intermediate goods is already reflected in the value of final goods.
Link for detailed answer is hereunder. You can study under topic, Precautions regarding calculation of National Income. :
https://www.meritnation.com/cbse-class-12-commerce/economics/introductory-macroeconomics/national-income-accounting/studymaterial/59_16_341_1987_5834
Hope this helps!
Regards.