In this article we will discuss about the measures of national income. In short, national income is a measure of the money value of the goods and services becoming available to the nation from economic activity. There are three approaches to measuring this: first, as a sum of the incomes derived from economic activity these broadly divide into incomes from [...]
In this article we will discuss about the difficulties for measuring India’s National income. National income is the net value of all goods and services (national product) produced annually in a country. It can be measured in three ways: (i) Firstly, it can be taken as the domestic product/output of goods and services produced by enterprise within the country. This [...]
The following points highlight the four major problems in measuring national income of a developing country. The problems are: 1. Lack of Reliable Data 2. Existence of Non-Monetised Sector 3. Difficulties in the Classification of Working Population 4. Defective Methods Used for Deflating Domestic Product Series. Problem # 1. Lack of Reliable Data: The reliability of data relating to national [...]