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Homework answers / question archive / Which is a primary use for national income accounting? a) To analyze the environmental cost of economic growth
Which is a primary use for national income accounting?
a) To analyze the environmental cost of economic growth.
b) To assess the economic efficiency of specific industries in the economy.
c) To measure changes in the value of goods and services produced in the economy.
d) To determine whether there is a fair and equitable distribution of income in the economy.
Option c) To measure changes in the value of goods and services produced in the economy is correct.
The reason is that GDP captures only mathematical figures regarding what all value addition has happened in a period in a region. It does not involve value judgement regarding equitable distribution and also does not include the concept of environmental benefits or costs. The concept of average product or efficiency is also not involved in GDP determination.
