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National Income Accounting Video Lecture | Indian Economy for State PSC Exams - BPSC (Bihar)
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FAQs on National Income Accounting Video Lecture - Indian Economy for State PSC Exams - BPSC (Bihar)
| 1. What is national income accounting? |  |
| 2. Why is national income accounting important? | |
National income accounting is important as it helps policymakers, economists, and analysts to assess the economic health and performance of a country. It provides valuable insights into the overall level of economic activity, income distribution, savings, investments, and other important economic indicators.
| 3. What are the main components of national income accounting? | |
The main components of national income accounting include personal consumption expenditures, business investment, government spending, and net exports. These components collectively represent the total expenditure and income generated within an economy.
| 4. How does national income accounting measure economic growth? | |
National income accounting measures economic growth by calculating the annual change in a country's gross domestic product (GDP). GDP represents the total value of all final goods and services produced within a country's borders in a given time period. By comparing GDP figures over time, economists can determine the rate of economic growth or contraction.
| 5. What are the limitations of national income accounting? | |
National income accounting has several limitations. It does not consider non-market activities, such as unpaid work or the informal sector, which can be significant in some economies. It also fails to capture the distribution of income and wealth among different segments of the population. Additionally, national income accounting does not account for environmental costs or the sustainability of economic growth.
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Video Description: National Income Accounting for BPSC (Bihar) 2025 is part of Indian Economy for State PSC Exams preparation.
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