Question

What are the difficulties faced while estimating National Income?

• A. Lack of reliable data
• B. Illegal income
• C. Both A&B
• D. None of the above

Answer 1

Answer: (C)

Both A&B

The measurement of national income is a complex process that requires a large amount of data on the income of the citizens of the country. The collection of such data is difficult due to various factors like lack of availability of reliable data, illegal income which is not recorded, multiple occupations, etc.