Question

Give reason "National income estimates are accurate in India".

Answer 1

India uses a combination of the output method and the income method for the calculation of national income. income method of calculating national income is very much accurate but the output method is not that reliable as it ignores some of the values cannot be measured in monetary terms.So, national income estimates in India are not exactly accurate but these estimations r very near to the exact value.

Answer 2

Nation income estimates of India are not quite accurate but imperfect.

Explanation:  

• There is the restriction of counting certain services in national income. These are, for instance, amenities of housewife, painting one’s own house, driving one’s own car, etc.

• The elimination of these services makes national income approximations an imperfect measure of financial activity.

• The value of such excepted amenities of course varies from country to country.

• Correct approximation of national income is made possible if a considerable part of economic activities is monetized, for this allows the estimator to know the prices and money value of considerable parts of the economic activity.

Hope it helped...........