The following points highlight the six main factors to be taken into consideration for computing GNP. The factors are: 1. Leisure 2. Quality of Life 3. Non-market Transactions 4. Structure of Production 5. Availability of Essential Consumer Goods 6. Externalities. Computing GNP Factor # 1. Leisure: An important element affecting the welfare of a community is the amount of leisure [...]
Here are seven difficulties that are faced in computation of national income in underdeveloped countries. (i) A good portion of the produce is not brought to the market to be exchanged with the measuring rod of money. It is either consumed directly by the producers or is exchanged for other goods and services. Only rough estimates are made about this [...]
Here we detail about the six major difficulties faced by a country during computation of national income. 1. Types of Goods and Services: The kinds of goods and services which should be included in national income pose a problem. Goods and services having money value are included in the national income but there are goods and services which may have [...]