Which of the following is a major challenge in the measurement of national income in developing countries? MCQ with Answer and Explanation

Which of the following is a major challenge in the measurement of national income in developing countries?
A. Presence of a large non-monetised sector
B. Uniform accounting practices across all countries
C. Absence of the informal sector
D. Complete availability of data for all sectors
Answer: Option A
Solution (By JKSSB Mock Tests)
Developing countries face difficulties in measuring national income due to a large non-monetised (barter) sector, informal activities, lack of reliable data and underreporting.

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Practice More Economy Set 1 Questions

Question #1
The 'General Agreement on Tariffs and Trade' was replaced by the WTO in which year?
A. 1995
B. 1993
C. 1998
D. 2001

Correct Answer: Option A


Explanation:
The WTO replaced GATT in 1995.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'MUDRA' Yojana was launched in which year?
A. 2016
B. 2015
C. 2013
D. 2017

Correct Answer: Option B


Explanation:
Pradhan Mantri Mudra Yojana was launched in 2015.

This question belongs to: Economy GK Economy Set 1
Question #3
Zero-based budgeting requires that:
A. previous year's budget is the base for all allocations
B. deficit is zero
C. only capital expenditure is budgeted
D. every expenditure item is justified from zero each year

Correct Answer: Option D


Explanation:
Zero-based budgeting requires all expenditures to be justified from zero each budget period.

This question belongs to: Economy GK Economy Set 1