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Why is national income considered an incomplete indicator of economic health in macroeconomics?

Answer and explanation

Correct answer: Because it does not fully show distribution, employment, prices and quality of life

National income measures the monetary value of economic activity, but it does not by itself reveal how income is distributed, whether jobs are adequate, whether prices are stable, or whether production improves health, security and environmental quality. A complete assessment therefore requires several complementary social and economic indicators.

Related tags

National-IncomeEconomic-HealthLimitationsGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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