|What are the uses of National Income statistics?|
|1. National income statistics are valuable instruments of economic analysis and a guide to economic policies to be pursued. It is more useful in context of planning and formulation of realistic plans.|
|2. It gives an idea of the structure of the economy. It helps to make inter- sectoral comparisons and to study the rate of growth of the economy. The growth of national income is an index of the growth of the productive capacity of an economy.|
|3. It helps to study inter-sectoral growth. Such comparisons are useful. Share of various sectors can be studied to find out structural defects and weaknesses of the economy.|
|4. It enables us to study per capita income or per capita consumption which are general indicators of economic growth. But it is not helpful in revealing distribution of income in the society.|
|Select the correct answer using the codes given below.|
A) 1 and 4 only
B) 1, 2, and 4 only
C) 1, 2 and 3 only
D) 1, 2, 3 and 4
Correct Answer: D
Solution :National income figures help governments in planning, policy making, preparation of budgets and forecasting the level of economic activity national income estimates enables us to make international comparisons and standard of living of people. It shows the capacity of a country to bear some common burden of international institutions like the U.N.O.
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