Question 45
National IncomeIt is important to measure the National Income of a country because
- A.it is a major determinant of the standard of living
- B.it reveals hazards of development like pollution and congestion
- C.it reveals the distribution of the citizen's savings in foreign banks
- D.its size determines the extent of political stability
Show the answer and explanation
Answer: A (it is a major determinant of the standard of living)
Explanation
National income (especially per head) shows how much goods and services people can enjoy, so it is used to judge the standard of living.