State the conceptual and statistical problems of measuring national income in your country

(i) conceptual problems of measuring national income in your country

• Calculation of incomes: In underdeveloped countries, people are not specialized in a particular occupation. They work in one occupation at one season and another occupation in another season. Hence it is difficult to calculate the national income.
• difficult to calculate the value goods that are to be sold but are used for self-consumption.
• Difficult to make a clear distinction between primary, intermediate and final goods.
• Illegal activities
• Problems of valuing inventories and work in progress
• Existence of large subsistence output
• Valuing of unpaid service e.g. House wives.

(ii) Statistical problems of measuring national income in your country

• Inadequate data/information
• Problem of double counting/transfer payment
• Difficulty in valuing government services
• Unpaid services
• Difficulty in calculating depreciation of capital
• Difficulty in valuing of subsistence output
• Price changes/instability