If the government provides free vaccination services how is their output value generally estimated in national accounting?
Answer and explanation
Correct answer: On the basis of government production cost
Government vaccination is a non-market service because it is supplied without a directly observed market price. In national accounting, such government services are generally valued by the cost of production, including relevant employee compensation, medicines, supplies, and other operating inputs. The absence of user payment does not mean that output is zero. Therefore option C is correct; happiness is a welfare outcome, not the accounting valuation method.
Frequently asked questions
What is the correct answer to this question?
On the basis of government production cost
Why is this the correct answer?
Government vaccination is a non-market service because it is supplied without a directly observed market price. In national accounting, such government services are generally valued by the cost of production, including relevant employee compensation, medicines, supplies, and other operating inputs. The absence of user payment does not mean that output is zero. Therefore option C is correct; happiness is a welfare outcome, not the accounting valuation method.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
