Question

State with reasons whether you agree or disagree with the following statement:

Statistical data of national income helps in framing national policies.

Options

• Agree

• Disagree

Answer 1

I agree with the above statement.

Reasons:

1. The foundation of national policies, including those pertaining to employment, industry, agriculture, etc., is the statistical data on national income.
2. We can determine the direction of changes in industrial output, investment savings, etc., by using the national income information.
3. National income statistics are also useful in creating economic models, such as growth and investment models, which can be implemented to steer the economy in the appropriate direction.

Therefore, national income statistics are useful in formulating national policy.