Uses of National Income Statistics
Standard of living indicators
Reflect the individuals' welfare because it shows how much goods and services can be consumed by each individual in a country.
It can be measured by GDP per capita
Can be compared based on two different perspectives:
To compare the standard of living over time
To compare the standard of living across the country
Government planning and policies
The available statistic of national income cam guide the policymakers in planning for the future.
Government can take necessary measures to improve the current level of the economy or take the right corrective actions
Sectoral contributions
An economy is made up of various economic sector
Primary sector
Secondary sector
Tertiary sector
- Agriculture
- Forestry
- Mining
- Quarrying
- Manufacturing
- Construction
- Electricity
- Gas
- Water
Policy makers can recognize which economic sector are more or less likely contributing to the NI
International comparisons
With NI statistic, we can compare the absolute size of in economy relative to another and how well off the average individual is in each country.
SITI MARYAM IRWANI BT MUHSEIN
2019476188
KBA2462A