Which of the following indicates uses of "National income accounting"?
Answer & explanation
Correct answer: option 4
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:
- Indicates specific contribution of individual sectors of economy.
- Helps to find out structural changes in the economy.
- It reflects how various factors of production's share the national income.
- It helps us to understand the working of economy.
- It helps in comparing the national income and per capita income of India with other foreign countries.