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Discuss the problems or difficulties in measuring GNP in less development countries.
⇒- Illiteracy: There is widespread illiteracy among the people in these countries. They often don’t maintain accounts of their production, sales or income.
- Non-monetized sector: In less developed countries there is vast non-monetized sector.
- Non-market transactions: In rural areas of these countries, various products are grown but there are not sold in the market. All these non-market transactions remain excluded from the gross national product.
- Lack of occupational specialization: One person suppose gets wages from work in factory income by hawking some articles, receive some income from land etc. As a result, there is under-estimation of national product.
- Lack of reliable statistic: There is lack of reliable statistics also related to consumption and rural investment. Consequently accurate estimation of GNP becomes extremely difficult.
