Categories: Economics

Difficulties in the Measurement National Income

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p>National Income is a top line figure for the any country’s economy&semi; However&comma; Arranging statistics in a reliable data source need considerable attention and there are some hurdles in measurement of national income&period;<&sol;p>&NewLine;<h3>Duplication<&sol;h3>&NewLine;<p>A major threat to national income computing is replication of value of the product&period; While measuring the NI of a country for a specific period the value of products and services should be included at final stage &lpar;finish good&rpar;&period; The value of intermediate or those goods which are used for preparation of final goods will not be included&semi; as including the value of product at different stages can cause the duplication error and in this situation NI will be over-estimated&period; Therefore&comma; either the price of final good be included or the value-added method be adopted&period;<&sol;p>&NewLine;<p>&lbrack;linkunit&rsqb;In the measurement of NI&comma; the non productive transactions make the task difficult&period; Most economists are of the view that the productive transactions consist of final purchase of newly produced goods&period; In our economic life most of the transactions are of non productive natures which are briefly discussed below&period;<br &sol;>&NewLine;Securities Transactions of Secondary market&colon;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;

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