Methods of Measurement

Methods of Measurement - Kuznets of the U.S. are worth...

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Methods of Measurement: Measurement of national income , though important, is a very complex activity. Double counting, omissions, statistical errors etc. may cause considerable inaccuracy in the measurement of income. It was only during the last two decades of the 19th century that systematic attempts were made to measure national income. Since then economists have from time to time introduced various devices to widen the coverage and to reduce the degree of inaccuracy in the process. In particular, the efforts of Nobel laureates like Dr. Richard Stone of the U.K. and Dr. Simon
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Unformatted text preview: Kuznets of the U.S. are worth mentioning. Dr. V.K.R.V. Rao of India has also carried out useful research in this respect. Yet the complex nature of national income accounting demands three different methods of measurement to ensure the greatest degree of accuracy. These are product, income and expenditure methods. These three methods are complementary to each other and all of them are employed according to convenience....
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This note was uploaded on 11/17/2011 for the course EC ec 201 taught by Professor - during the Fall '10 term at Montgomery.

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