Difficulties in measurement of National Income

Difficulties in the Measurement of National Income

a) Danger of Double Counting

Only final goods must be included while all intermediate goods must be excluded. Thus to avoid double counting, we only sum up the value added at each stages of production.

b) Unpaid Activities

Generally, unpaid services such as housewife services or voluntary services should be excluded.

c) Treatment of Government Expenditure

Any payment by the government that do not give rise to any economic activity will not be considered as government expenditure, and hence must be excluded in the calculation of National Income. These expenditure are merely transfer payments.

d) Inadequate and Inaccurate Information

Some important information may not be available due to illiteracy and ignorance of the people to keep proper record. In many cases, false information on income are given to avoid paying high taxes.

e) Depreciation and Stock Valuation Method

Different depreciation and stock valuation methods used will produce different results and hence different National Income figures.

Email based economics assignment help - homework help at TutorsGlobe

Are you searching economics tutor for help with Difficulties in measurement of National Income questions?  Difficulties in measurement of National Income topic is not easier to learn without external help?  We at www.tutorsglobe.com offer finest service of economics homework help and economics homework help. Live tutors are available for 24x7 hours helping students in their Difficulties in measurement of National Income related problems. We provide step by step Difficulties in measurement of National Income question's answers with 100% plagiarism free content. We prepare quality content and notes for Difficulties in measurement of National Income topic under economics theory and study material. These are avail for subscribed users and they can get advantages anytime.

Why TutorsGlobe for homework help

  • Higher degree holder and experienced tutors network
  • Punctuality and responsibility of work
  • Quality solution with 100% plagiarism free answers
  • Time on Delivery
  • Privacy of information and details
  • Excellence in solving accounting questions in excels and word format.
  • Best tutoring assistance 24x7 hours

©TutorsGlobe All rights reserved 2022-2023.