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 [...]
National income, observes the Nobel Lanreate economist Simon Kuznets is the end product of a country's economic activity. The study of national income estimates is very useful as it gives us a systematic view of the whole economy. It is, indeed, the barometer of measuring a country's economic progress. For this reason, Benham remarks, "The best way to get a [...]
The following points highlight the top uses of national income data. The uses are: 1. Population 2. Composition of output 3. Distribution of income 4. Different national currencies 5. Statistical limitations. Use # 1. Population: A higher national income clearly does not mean a higher standard of living if the extra income is shared among more people. The standard of [...]