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Land utilisation

  LAND UTILIZATION  Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of phys...

DIFFICULTIES WHILE CALCULATING NATIONAL INCOME

Difficulties in calculating National income

a) Double counting : Double counting implies the possibility of commodity like raw material or labour bring included in national income more than once. 

For instance, a farmer sells maize worth rupees two hundred to a mill owner, the mill owner further sells it to wholesale dealer, who further sells it to retailer and who in turn sells it to consumer, if we calculate it at every stage, its value will come to 800 rupees but actually the increase in national income has been to extent of two hundred rupees only. 

b) Difficulty of defining nation : The definition of nation is used in studies of National income. National income does not only include income produced within the country but also income earned in other countries by way of shipping charges, interest, insurance minus any payments made to foreign countries. Therefore, the definition goes beyond this. 

c) Non- marketed services : Commodities and services having money value are included in national income but there are goods and services which may have no corresponding flow of money value. Thus, the difficulty arises whether these should be added in national income or not. 

d) Inapplicability of one method :Another difficulty is regarding which method is to be used while calculating national income because of the costs of collecting statistics.

e) Difficulty in choosing stage: Regarding the stage of economic activity at which national income be calculated, it is agreed that any stage production, consumption and distribution may be adopted depending upon the function, the national income estimate is expected to discharge. 

f) Non - availability of statistics : This difficulty is not peculiar go underdeveloped countries but even in advanced countries reliable and sufficient statistics are lacking. 

f) Transfer payments : The transfer payments associated with income method is another difficulty. The transfer of money from one person or group to another person should be avoided. 

g) Self consumed production : The part of output is not exchanged for money ,it is either consumed directly by consumers or bartered for other goods. This made calculation of national income difficult. 

h) Multiple occupations : The production on agriculture and industrial as a matter of fact on all sectors is highly scattered and unorganised rendering the calculation of national income difficult. 

i) Incorrect statistics : People usually don't disclose their incomes easily and correctly. They don't keep proper accounts. These difficulty exist in India and thus calculation of national income has been always remain difficult. 

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