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The textbook states that India's national income estimates carry a margin of error of at least:
ATwo per cent
BFive per cent
CTen per cent
DTwenty per cent
Answer & Solution
Correct answer: C. Ten per cent
1. The chapter lists statistical problems in measuring Indian national income, including unreliable farm data and untrained staff.
2. It concludes that national income estimates in India are not very accurate or adequate.
3. It states that there is at least a ten per cent margin of error, meaning national income is overestimated or underestimated by at least ten per cent.
4. The textbook illustrates the consequence by noting that GDP estimates for India vary from two trillion US dollars to five trillion US dollars.
5. A further Indian difficulty it names is the large unorganised and non-monetised subsistence sector where barter still prevails.
_Source: TN HSC Class 12 Economics (Samacheer Kalvi, Govt of Tamil Nadu), Ch 2 "National Income", §2.7.7_
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