Question

explain the national income explain the income method for calculating national income along with it precaution

Answer 1

the total amount of income accruing to a country from economic activities in a year's time is known as national income.
1. Transfer payments are not included in estimating national income.


2. Imputed rent of self-occupied houses are to be included in calculating national income.

3. Illegal money through smuggling etc. are not included as they cannot be easily estimated.