Uses of National income statistics to a country.

Uses of National Income Statistics to a country

Uses of National income statistics to a country.

1. Indicator/measure of standard of living - an improvement/increase of national income indicates/improved welfare/improved standard of living I vice versa.
2. Comparison of standard of living between countries - countries with high national income are deemed to have high standard of living and vice versa.
3. Assessing performance of the economy over time - the period with high national income is considered to be better off.
4. Economic Planning - comparing performance in different sectors and regions helps the government in planning for better! efficient allocation/use of resources.
5. For investment decision - Data obtained can be used by entrepreneurs to make decision on the sector, when and amount of capital to invest.
6. Provide information on distribution/contribution of income - this helps the government to address income/production disparities eg. through subsidies and tax relief.
7. To attract foreign aid/donor funding, when a country shows strong economic growth/when experiencing challenges to finance its development/for budgetary support.
8. Calculate/determine per capita income - by dividing national income by the population.
9. Compare standards of living in a country between different years/periods. The year/period the NY is high is said to have a high standard of living/vice versa.

Related Business Studies Quiz and Answers on National Income. Form 3 Level

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