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. Complete availability of reliable data for all activities
B. Uniform and comprehensive accounting practices
C. Presence of a large non-monetised and informal sector
D. Absence of any informal economic activity
Answer: Option C
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 concept of 'Interoperability' in digital markets refers to:
A. The ability of different systems, platforms or services to work together and exchange information
B. The complete isolation of platforms
C. Only the proprietary control of all interfaces
D. Only the absence of any data sharing

Correct Answer: Option A


Explanation:
Interoperability is the capacity of different digital systems or platforms to communicate, exchange data and use the exchanged information, which can reduce switching costs and increase contestability.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Budget Division' in India is a part of which ministry?
A. Ministry of Commerce
B. Ministry of Finance
C. Ministry of Statistics
D. NITI Aayog

Correct Answer: Option B


Explanation:
Budget Division is part of the Department of Economic Affairs, Ministry of Finance.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' Council chairperson is:
A. RBI Governor
B. Union Finance Minister
C. President
D. Prime Minister

Correct Answer: Option B


Explanation:
GST Council is chaired by the Union Finance Minister.

This question belongs to: Economy GK Economy Set 1