1.

Why national income is one of the most important criteria to measure the economic prosperity of a country.

Answer»
  • National income is a basic concept of macroeconomics and so it is studied while studying macroeconomics.
  • In order to derive national income of a nation, the nation measures all the economic activity done in the nation or say in the whole economy of the nation.
  • The national income of a country is a balance sheet of the performance of its economy. So, national income tells us with the economic health of the economy.
  • If the national income of an economy increases it is generally a symbol of well-being and if the national incom of an economy decreases or increases slowly it can be said that it is a symbol of an unhealthy economy.
  • Thus, we can say that national income is one of the most important criteria to measure the economic prosperity of a country.


Discussion

No Comment Found

Related InterviewSolutions