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

Which of the following is a major difficulty in measuring national income in developing countries?
A. Absence of any informal economic activity
B. Presence of a large non-monetised and informal sector
C. Complete availability of reliable data for all activities
D. Uniform and comprehensive accounting practices
Answer: Option B
Solution (By JKSSB Mock Tests)
Developing countries face significant measurement challenges due to a large non-monetised sector, widespread informal activities, under-reporting and inadequate statistical systems.

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Practice More Economy Set 1 Questions

Question #1
The 'Round Revolution' in India is associated with:
A. fish
B. eggs
C. milk
D. potato production

Correct Answer: Option D


Explanation:
The Round Revolution is associated with increased potato production.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Demands for Grants' are part of:
A. foreign trade policy
B. stock market
C. Union Budget
D. monetary policy

Correct Answer: Option C


Explanation:
Demands for Grants are part of the Union Budget.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a primary function of money?
A. Unit of account
B. Medium of exchange
C. Store of value
D. Standard of deferred payments

Correct Answer: Option B


Explanation:
The primary function of money is to act as a medium of exchange.

This question belongs to: Economy GK Economy Set 1