"The national dividend or income consists solely of services as received by ultimate consumers,whether from their material or from their human environments.Thus,a piano or an overcoatmade for me this year is not a part of this year's income,but an addition to capital.Only the services rendered to me during this year by these things are income."
The main points of criticism of fisher's definition:-
1. There are a number of consumers of a commodity and they live at different places in a country.Thus it is difficult to calculate the money value of the annual consumption.Further,the number of commodities is very large and each possesses a number of varieties.In such a situation,it is easier to find out the value of production than the value of annual consumption.
2. Durable commodities have their different periods of life for different consumers.It is difficult to allot a definite 'life' to each and every commodities produced in a country.
3. A durable consumer good may pass through the hands of a number of persons.
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