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Chapter 1 unit 1

Economics

In expenditure method if we produce a product previous year and consumed in this year means in which year consumption we will take!? Why?

Ramya Navanitham

CA Inter

★ 75

19-Aug-23 22:14

185

Answers (4)

I think at the time of production it will be counted because it doesn't affected by consumption but the production matter in derivation of national income

Naina Bhojwani

CA Inter

★ 5K+

20-Aug-23 11:23

Naina Bhojwani

I think at the time of production it will be counted because it doesn't affected by consumption but the production matter in derivation of national income

So we will count that in previous year national income!? But we spent money for the product this year so why it wont come in consumption for this year? Thank you

Thread Starter

Ramya Navanitham

CA Inter

★ 75

21-Aug-23 19:02

Yes it will be counted in previous year and not In current year cuz production has been completed in the last year only and at the time of calculating GDP of the country in the year the value of that particular product has already been added

Naina Bhojwani

CA Inter

★ 5K+

21-Aug-23 21:27

Production year is important and it is accounted in that year