Multiple choice

One of the problems in calculating the national income in India correctly is

  1. Under employment;

  2. Deflation;

  3. Inflation;

  4. Non-monetised consumption;

  5. Low savings
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A major challenge in calculating national income in developing countries like India is the presence of a large non-monetized sector, where goods and services are bartered or consumed directly by producers without market transactions.

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