National Income

USES OF NATIONAL INCOME 1)Standard of living comparison

-Compare the standard of living of people. 2) Economic performance overtime

declining. 3)

-Tell us whether the economic is growing, stagnant or

National planning -Government uses for the income statistic.

4)

Sectoral contributions -There are three main sector. Primary- Agriculture Secondary-Manufacturing Tertiary -Electricity

5)Economic policy

-Estimates, future economic policies.

6)Inflationary and deflationary gaps

-Help to know purchasing power of money 7)National expenditure -Provides information for reasonable depreciation. 8) Public sector -National Income contains Consumption, saving, investment, imports and export. 9) Distribution of income Production in rent, wages, interest and profits.

1) Problem Of non-monetized sector 2) Problem of illiteracy 3)Problem of expertise 4)Problem of less sophisticated machinery 5)Problem of double counting 6)Problem of false information 7) Problem of multi occupations