Question

Lack of reliable statistical data is an important factor which creates difficulty in

estimating national income . Find out the other factors?​

Answer 1

Answer:

The first difficulty arises because of the prevalence of non-monetized transactions in under-developed countries like India, so that a considerable part of output does not come into the market at all. Agriculture still being in the nature of subsistence farming in these countries, a major part of output is consumed at the farm itself. The national income statistician, therefore, has to face the problem of finding a suitable measure for this part of output.

(ii) Because of illiteracy, most producers have no idea of the quantity and value of their output. They do not follow the