BBS Second Year: Macro Economics For Business
National Income Accounting
Answer in English and Nepali Medium
What is National Income? Explain the difficulties of calculating the national income. (10)
Write the difficulties of calculating national income in underdeveloped countries.
Answer: The national income is the sum of the income of the means of production within the country and the net income received from abroad in a period of one year.
Difficulties in calculating national income
1. Difficulty in calculating non-monetary sector.
A large part of the Least Developed Countries are occupied by the barter system, such as the non-monetary sector, and real national income cannot be calculated with great difficulty.
2. Lack of literacy.
Many citizens are illiterate and cannot tell about production and income, which is why they do not get real statistics.
3. People belonging to different professions.
Since the same people are involved in different professions, real data is not available
4. Problems with data collection.
Without competent and trained data collectors, real data cannot be obtained.
5. Lack of interest.
Backward people are ignorant of national income and do not provide real data which makes it difficult to calculate
Answer in Nepali Medium: