What is the significance of national income accounting or social accounting? National income accounting is essential to know the problems of the economy. National income accounting is significant because of the following reasons.
What are the difficulties found in the calculation of national income? National income refers to the total income of the nation in a particular period of time. It is the aggregate money values of all verities of goods and services produced-during a year.
Free sample essay on National Income. The concept of National Income is worth elaborating as it is the index of economic development. Innumerable verities of goods are produced in an economy in a year.
The following precautions should be taken while using production method: Value of production for self-consumption included in the national income. No doubt this part of the production has been consumed by the producer, but it has been produced.
National income estimates suffer from several drawbacks and this highlights the need to improve their data availability and methods of computation.