Identify the likely problems that can be encountered in the compilation of National Income Accountant in Nigeria. (SSCE)
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Expert's answer
2016-04-12T08:38:04-0400
The difficulties involved in national income accounting are both conceptual and static in nature. In developing countries, like Nigeria, non-monetary transactions are very widespread. To account those payments is a significant problem. Avoiding paying taxes is another problem of developing world. Therefore an underground economy is hardly can be displayed in the figure of the National Income. However, other problems of the National Income Accounting are typical for both developed and developing countries: double counting, accounting of public services, uncertainties associated with the rise in prices, capital gains or loss.
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