Question

Who has made first attempt of National Income Accounting?

• A. Keynes
• B. Kuznets
• C. Gadgil
• D. Gregory King

Hint:

Simon Kuznets is known for pioneering the method of national income accounting, which later became the foundation for measuring a country's economic performance.

Answer 1

The Correct Option is B

Step 1: Understanding National Income Accounting:
National income accounting is the system used to measure the economic activity of a country, including the production of goods and services. It tracks the flow of income between different sectors of the economy, such as households, businesses, and government. This system helps in measuring Gross Domestic Product (GDP) and other key economic indicators.
Step 2: Historical Context:
- Keynes (Option A): John Maynard Keynes made significant contributions to macroeconomics, particularly with his General Theory of Employment, Interest, and Money. However, he did not develop national income accounting.
- Kuznets (Option B): Simon Kuznets is credited with the first attempt at systematic national income accounting. His work laid the foundation for the modern system of national accounts used today.
- Gadgil (Option C): V. M. Gadgil was an Indian economist who contributed to various economic discussions but was not the pioneer of national income accounting.
- Gregory King (Option D): Gregory King was an economist known for his work in demographic studies and the distribution of wealth in England, but he did not contribute to national income accounting.
Step 3: Conclusion and Answer:
The correct answer is (B), as Simon Kuznets made the first systematic attempt at national income accounting in the 1930s, which was later expanded into the GDP framework.