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     EduGorilla 
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    “The conceptual difficulties in National Income comparisons between underdeveloped and industrialised countries are particularly serious because a part of the national output in various underdeveloped countries is produced without passing through the commercial channels.”

    In the above statement, the author implies that:

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    1. the entire national output produced and consumed in industrialized countries passes through commercial channels

    2. the existence of a non-commercialized sector in different underdeveloped countries renders the national income comparisons over countries difficult

    3. no part of national output should be produced and consumed without passing through commercial channels

    4. a part of the national output being produced and consumed without passing through commercial channels is a sign of underdevelopment

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