Question

The National income aggregates are used for which of the following purposes

1. Comparison between different nations based on Socio-economic criterian.
2. Comparison of economic growth of a nation with itself.
3. Measurement of economic indicators of a nation.

Which of the above statements are correct?

• 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

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> National income accounting is a government bookkeeping system that measures a country's economic activity offering insight into how an economy is performing.

National income accounting systems allow countries to assess the economic growth of the country and per capita income. It helps to assess the effects of various economic policies. Thus it helps in comparison of economic growth of a nation with itself and measurement of economic indicators of a nation.

National income indicators do not provide sufficient data to understand the social development and social indicators like poverty, inequality, education and health data. Thus this data cannot be used to compare social indicators of a nation with another.