payment of fees to lawyer by firm is not included then why should we include payment to mechanic?
Both payment to lawyer by a firm and fees paid to mechanic should NOT BE INCLUDED:
1)Services purchased by one firm from another, like consultancy services of an advocate, are treated as a part of intermediate comsumption.Therefore it should not be included in tne estimation of national income.
2)Fees to mechanic paid by a firm will not be included in the estimation of national income because this fees is an intermediate expenditure for the firm and not a final expenditure.
1)Services purchased by one firm from another, like consultancy services of an advocate, are treated as a part of intermediate comsumption.Therefore it should not be included in tne estimation of national income.
2)Fees to mechanic paid by a firm will not be included in the estimation of national income because this fees is an intermediate expenditure for the firm and not a final expenditure.