Question

State the difficulties in measurement of national income

Answer 1

hey!

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• The following points will highlight the six major Problems in Measuring or calculating National Income:-

• The Problems are:-

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• 1. Exclusion of Real Transactions.

• 2. The Value of Leisure.

• 3. Cost of Environmental Damage.

• 4. The Underground Economy.

• 5. Transfer Payments and Capital Gains.

• 6. Valuation of Inventories.

• 7. Self-Consumption.

• 8. Lack of Official Records.

• 9. Imputed Income.

• 10. Valuation of Government Service.

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Answer 2

Explanation:

National income is the money value of goods and services. ... The main problem is whether to include theincome generated within the country or even generated abroad in national income and which method should be used in the measurement of national income.