Question

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0.4. Answer in detail
1. Explain the practical difficulties involved in the measurment of national income ​

Answer 1

Answer:

Problem-related to double counting: One of the major problems involved in the estimation of national income by the value-added method is the problem of double counting. ... Thus, if the value of the good is taken into account every single time, it leads to estimating the value of the product more than once.

Answer 2

Answer:

If the population of a country is large(example:INDIA) will obviously have more total income while small countries like Sri Lanka will have low total income.So we conclude that it is not accurate.

Explanation:

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