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) Purchases by foreign tourists.
(i) Payment of fees to a lawyer is included in national income because it is remuneration for rendering productive (i.e., legal) services.
(ii) Imputed rent of rent-free house is included because it is compensation in kind to an employee for rendering productive services.
(iii) Purchases by foreign tourists in the country is like export of the country's product. Since export is a part of domestic product, therefore, expenditure on purchases by foreign tourists is accounted in estimating national income by expenditure method.
