1.

Explain in brief the problems arising in measuring National Income.

Answer»
  • The Central Statistical Organization (CSO) calculates the national income of India since 1954.
  • The CSO takes 1999-2000 as base year and then calculates national income .at constant prices.

Problems faced by CSO during measurement are:

  • Problems of double accounting
  • Problems of self-consumption
  • Problems of depreciation
  • Tax avoidance and tax evasions
  • Illegal income
  • Problems of net foreign income
  • Problems in accounting

Following problems arise in accounting:
(A) Illiteracy
(B) Small scale production-sale
(C) Barter system
(D) People involved in more than one occupation

The CSO tackles all these problems well and tries to obtain national income by counting the income carefully.


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