Which is a primary use for national income accounting? a) To analyze the environmental cost of economic growth

Economics Dec 14, 2020

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.

Expert Solution

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.

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote