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The main problem with measuring national income by the output method is:
  • a)
    Difficulty in valuing intermediate goods
  • b)
    Exclusion of government expenditures
  • c)
    Inclusion of imports
  • d)
    Inclusion of investment expenditures
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
The main problem with measuring national income by the output method i...
The output method of measuring national income involves summing up the value of all final goods and services produced. One of the main challenges in this method is accurately valuing intermediate goods, which are used as inputs in the production process. Determining the appropriate value for intermediate goods can be complex and may lead to inaccuracies in national income estimates.
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