Get premium membership and access questions with answers, video lessons as well as revision papers.

What difficulties are encountered when determining the national income using output approach?

      

Difficulties are encountered when determining the national income using output approach.

  

Answers


Raphael
1. Goods in stock are difficult to value.

2. Problem of differentiating intermediate inputs from primary inputs.

3. A large subsistence sector that has no records.

4. Double counting of output at different levels of production.

5. Illegal activities that bring output are included in the measurement.

6. Price fluctuations affect valuation of output.

7. Inadequate output data.

8. Deciding on which goods and services to include in measuring national income is a problem.

9. Inaccurate data/information.

10. Problem valuing government output as it is not sold in the market.
raphael answered the question on January 6, 2017 at 13:50


Next: What are the way through which the government of Kenya may train entrepreneurs?
Previous: Expand the expression $(2 - \frac{1}{5}x)^4 $ upto the term x3

View More Business Studies Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions