CSEET · Economic and Business Environment · National Income Accounting and Related Concepts
Which of the following is a recognised use of national income statistics?
National income statistics are used to compare the size and growth of an economy across years and countries. They guide planning and policy. They cannot measure happiness, set commodity prices or show the profit of an individual firm.
- AComparing the size and growth of the economy across different yearsCorrect
- BDetermining the exact happiness level of citizens
- CFixing the market price of each commodity
- DDeciding the profit of an individual firm
Explanation
National income data help measure economic growth over time and compare economies. They do not measure happiness, fix individual prices or show a single firm's profit, so those options are wrong.
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