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Which of the following is excluded while calculating National Income as per expenditure method?
Purchase of Second Hand goods
Purchase of financial Assets
Intermediate goods
All of the above
Option (4) is correct. Explanation: Precautions while using Expenditure Method: (i) Only final expenditure is to be taken into account to avoid error of double counting. (ii) Expenditure on second hand goods is not to be included. (iii) Expenditure on transfer payments by the government is not to be included. (iv) Imputed value of expenditure on goods produced for self consumption should be taken into account. (v) Expenditure on shares and bonds is not to be included in total expenditure.
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