GCEEconomicsNational Income2020

Which of the following would cause the national income of a country to be OVERSTATED if included?

AThe salary of a civil servant
BThe value of vegetables grown and consumed by a subsistence farmer
CThe value of steel used in the production of automobilesCORRECT
DThe rent paid by a tenant to a landlord
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Why the answer is C, and why the others tempt you.
Including the value of steel (an intermediate good) used in automobile production alongside the final value of automobiles would result in double counting, thereby overstating national income. National income accounting only includes the value of final goods and services to avoid this problem. The other options represent final incomes or imputed values that are legitimately included.
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