In India, a special conceptual problem is posed by the existence of a large, unorganised and non-monetised subsistence sector where the barter system still prevails for transacting goods and services. Here, a proper valuation of output is very difficult. Difficulties: 1 Transfer payments 2 Difficulties in assessing depreciation allowance 3 Unpaid services 4 Income from […]
Tag: economics
Importance of Analysing National Income – National economy of a country – Studymaterial
National income is of great importance for the economy of a country. Nowadays the national income is regarded as accounts of the economy, which are known as social accounts. It enables us 1. To know the relative importance of the various sectors of the economy and their contribution towards national income; from the calculation of […]
What is National income – understanding GDP, GNP National Income
What is national income : National Income provides a comprehensive measure of the economic activities of a nation. It denotes the country’s purchasing power. The growth of an economy is measured by the rate at which its real national income grows over time. National income thus serves as an instrument of economic planning.Further, national income […]