Multiple choice

Which among the following factors creates obstacles in measuring correct estimate of national income?

  1. Inflation

  2. Existence of non-monetised sector

  3. Under employment

  4. Low rate of savings
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B Correct answer
Explanation

Existence of non-monetised sector creates obstacles in measuring correct estimate of national income. A well organised system of exchange in an economy based on the use of money is described as monetisation.  So a non monetized sector affects the stability of national income. 

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