Which answers demonstrates a shortcoming of national income accounting? Group of answer choices it includes market transactions that should be excluded. there isn’t enough data available in most developed countries to have national income accounts. it doesn’t take depreciation into account. it measures market activity but it does not measure social welfare.

• it measures market activity but it does not measure social welfare.

Explanation:

One common shortcoming of the national income approach of GNP is the fact that is excludes some non-market transactions which increase welfare. For example, services that housewives offer within the homes they are employed and community activities like religious functions both of which have a huge impact on welfare but not included in the national income approach.