National income provides insight into the overall health of an economy, its growth rate, and the distribution of income among its citizens. Discuss various methods to compute it.
Kartavya Desk Staff
Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
5. National income provides insight into the overall health of an economy, its growth rate, and the distribution of income among its citizens. Discuss various methods to compute it. (250 words)
Difficulty level: Easy
Reference: Insights on India
Why the question: The question is part of the static syllabus of General studies paper – 3. Key Demand of the question: To write about national income, its importance and methods to compute it. Directive word: Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments. Structure of the answer: Introduction: Begin by defining national income. Body: First, write about the importance of national income as a macroeconomic parameter and it indicates. Next, write about the various methods of computation of national income – Product Method, Income Method and Expenditure Method. Conclusion: Conclude by summarising.
Why the question:
The question is part of the static syllabus of General studies paper – 3.
Key Demand of the question:
To write about national income, its importance and methods to compute it.
Directive word:
Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments.
Structure of the answer:
Introduction:
Begin by defining national income.
First, write about the importance of national income as a macroeconomic parameter and it indicates.
Next, write about the various methods of computation of national income – Product Method, Income Method and Expenditure Method.
Conclusion:
Conclude by summarising.