National Income Accounting — Mains Questions

Examine the challenges faced in measuring national income in developing countries like India. How do these challenges affect the accuracy of GDP estimates and what measures can be taken to address them?

Critically analyze the statement: 'GDP is not a true measure of economic welfare.' Discuss the limitations of GDP as a welfare indicator and examine alternative measures that provide a more comprehensive assessment of development.

Explain the concept of circular flow of income in a four-sector economy. How does this concept help in understanding the three methods of calculating national income?