Question

Money facilitates estimation of national income.

• A. True
• B. False

Answer 1

The correct option is A True

ANS. A

Explanation: Money plays a vital role in the determination of income and employment. The contribution of all factors of Production like Land, Labour, Capital and Organization constitutes our national product. This national product is also known as national income. So, this national income is to be distributed among the above stated factors of production. Money makes the distribution of this joint production among the various factors of production easy. The relative shares of factors are also calculated through money.