National Income is a top line figure for the any country’s economy; However, Arranging statistics in a reliable data source need considerable attention and there are some hurdles in measurement of national income.

Duplication

A major threat to national income computing is replication of value of the product. While measuring the NI of a country for a specific period the value of products and services should be included at final stage (finish good). The value of intermediate or those goods which are used for preparation of final goods will not be included; as including the value of product at different stages can cause the duplication error and in this situation NI will be over-estimated. Therefore, either the price of final good be included or the value-added method be adopted.

[linkunit]In the measurement of NI, the non productive transactions make the task difficult. Most economists are of the view that the productive transactions consist of final purchase of newly produced goods. In our economic life most of the transactions are of non productive natures which are briefly discussed below.
Securities Transactions of Secondary market: