Which of the following economists gave the definition of National Income based on consumption?
Unlike Marshall and Pigou (who defined National Income on the basis of production/exchange), American economist Irving Fisher defined National Income on the basis of final…
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Which of the following economists gave the definition of National Income based on consumption?
Answer and explanation
Correct answer A
Unlike Marshall and Pigou (who defined National Income on the basis of production/exchange), American economist Irving Fisher defined National Income on the basis of final 'Consumption'—the net flow of services enjoyed by consumers from the stock of wealth during a year.
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