Question

1. (a) Is increase in National income an
(b) Discuss the value added method of measuring national income. Wh
faced in its estimation?
oblems are
1.75)

Answer 1

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Answer 2

Explanation:

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Difficulties in measuring national income are :

1) lack of reliable data - the reliability of data relating to the national income estimation is often questioned (in India)

2) Existence of Non-monetised sector

3) Difficulties in classification of working population

4) illegal income

The value added method is a way of computing the national income of a country . This system is also known as output or inventory method. This method calculates the national income by adding value to a product at every stage of its production..

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