Question
Explain five uses of National Income statistics to a country.
Answer
- Indicator/measure of standard of living and improvement/increase of national income indicates higher/improved standard of living/vice-versa/improved welfare/enjoy more/better goods/services.
- Comparison of standard of living between countries - countries with high are deemed to have high standard of living/vice-versa.
- Measure/indicator of economic growth/assessing performance of economy over time the period with high national income is considered to be better off/vice-versa.
- Economic planning by comparing performance/data/different sectors/regions for better/efficient allocation/use of resources.
- Attract investment/for investment decision – data obtained can be used (by entrepreneurs) to make decision on the sector/when/amount of capital to invest/growth is Nil will encourage investment/vice-versa.
- Provide information on distribution/contribution of income this helps the government to address Y/production disparities to know where to subsidize/give tax relief/identify priority/key sector/region not performing to their expectations.
- To attract foreign aid/donor funding when a country shows strong economic growth/when experiencing challenges to finance its development /for budgetary support.
- Calculate/determine per capita Y by dividing of N.I by population
- Compare standard of living in a country between different years/period the year/period the N.I is high is said to have a high standard of living/vice-versa.
- Comparison of standard of living between countries - countries with high are deemed to have high standard of living/vice-versa.
- Measure/indicator of economic growth/assessing performance of economy over time the period with high national income is considered to be better off/vice-versa.
- Economic planning by comparing performance/data/different sectors/regions for better/efficient allocation/use of resources.
- Attract investment/for investment decision – data obtained can be used (by entrepreneurs) to make decision on the sector/when/amount of capital to invest/growth is Nil will encourage investment/vice-versa.
- Provide information on distribution/contribution of income this helps the government to address Y/production disparities to know where to subsidize/give tax relief/identify priority/key sector/region not performing to their expectations.
- To attract foreign aid/donor funding when a country shows strong economic growth/when experiencing challenges to finance its development /for budgetary support.
- Calculate/determine per capita Y by dividing of N.I by population
- Compare standard of living in a country between different years/period the year/period the N.I is high is said to have a high standard of living/vice-versa.
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