One of the limitations of the national income accounting system is:
A)valuing all output at its market price regardless of its contribution to society's economic welfare.
B)placing a market value on all negative externalities.
C)accurately measuring the value of leisure time.
D)double counting food produced on a farm for family consumption.
E)ignoring government production of goods and services.

Question

Quizplus · Accepted Answer

The national income accounting system values all output at its market price regardless of its contribution to society's economic welfare, leading to a limitation in accurately measuring the overall well-being of a country. It does not account for non-market factors, such as volunteer work or household production, which can significantly contribute to a nation's welfare.

One of the Limitations of the National Income Accounting System