Question 34
National IncomeWhich of the following factors may lead to under-estimation of national income figures?
- A.Availability of skilled statisticians
- B.High volume of exports
- C.Emigration of skilled workers to foreign countries
- D.Subsistence production
Show the answer and explanation
Answer: D (Subsistence production)
Explanation
Output consumed by the producers themselves is not sold or recorded, so national income is understated.