UPSC > Indian Economy for UPSC CSE > National Income Accounting
National Income Accounting Video Lecture - Indian Economy for UPSC CSE
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FAQs on National Income Accounting Video Lecture - Indian Economy for UPSC CSE
| 1. What is national income accounting? |  |
Ans. National income accounting refers to the measurement of the economic activity of a country, including the total value of goods and services produced, income earned by individuals and businesses, and the overall economic performance. It helps in evaluating the economic health and growth of a nation.
| 2. Why is national income accounting important? | |
Ans. National income accounting is important as it provides policymakers, economists, and analysts with crucial information about the overall economic performance of a country. It helps in formulating effective economic policies, assessing the standard of living, measuring economic growth, and analyzing income distribution.
| 3. What are the main components of national income accounting? | |
Ans. The main components of national income accounting include gross domestic product (GDP), gross national product (GNP), personal income, disposable income, and national savings. These components provide a comprehensive picture of the economic activity and income generation within a country.
| 4. How is national income measured? | |
Ans. National income is measured by calculating the total value of goods and services produced within a country's borders over a specific period, known as GDP. It can be measured through three approaches: the production approach, the income approach, and the expenditure approach. These approaches help in capturing different aspects of economic activity.
| 5. What are the limitations of national income accounting? | |
Ans. National income accounting has certain limitations. It may not accurately capture the informal sector, underground economy, or non-monetary transactions. It may also overlook the environmental costs of economic activities and the distribution of income within the population. Additionally, it does not provide a complete picture of a nation's well-being, as it does not consider factors like happiness, education, and health.
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