Giving reasons, explain how the following are treated while estimating National Income:
(i) Payment of fees to a lawyer engaged by a firm.
(ii) Rent free house to an employee by an employer.
(iii) Purchase by a foreign tourists.
(i) Payment of fees to a lawyer engaged by a firm will hot be included while estimating National Income, as it is a kind of intermediate expenditure for the firm.
(ii) Rent free house to an employee by an employer will be included while estimating National Income, as it is a part of compensation to an employee.
(iii) Purchase by a foreign tourists will be included while estimating National Income as it is income for people operating in domestic market and it is considered as exports of goods and services.