Question

The National income aggregates are used for
1. Comparison between different nations based on Socio-economic criterion
2. Comparison of economic growth of a nation with itself
3. Measurement of economic indicators of a nation

• A. 1 and 3
• B. 1 and 2
• C. 2 and 3
• D. 1,2 and 3

Answer 1

The correct option is C 2 and 3

National income accounting is a government bookkeeping system that measures a country's economic activity offering insight into how an economy is performing. Such a system will include total revenues by domestic corporations, wages paid, and sales and income tax data for companies.

National income accounting systems allow countries to assess the current standard of living or the distribution of income within a population, as well as assess the effects of various economic policies. Thus it helps in the Comparison of economic growth of a nation with itself and measurement of economic indicators of a nation.