Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Which of the following indicates uses of "National income accounting"?

Options:

It tells how national income is shared among various factors of production

It helps in finding out structural changes in the economy i.e. shift from primary to secondary and then tertiary

It helps in analysing the reasons for unemployment in Indian economy

Both 1 and 2

Correct Answer:

Both 1 and 2

Explanation:

National income accounting is a method of preparing and presenting national income accounts based on the principle of double entry system of business accounting. Various uses off the same are:

  1. Indicates specific contribution of individual sectors of economy.
  2. Helps to find out structural changes in the economy.
  3. It reflects how various factors of production's share the national income.
  4. It helps us to understand the working of economy.
  5. It helps in comparing the national income and per capita income of India with other foreign countries.