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Uses of National Income Statistics, Problems of Measuring National Income …
Uses of National Income Statistics
Sectoral Contributions
Primary Sectors, Secondary Sectors and Tertiary Sectors depends on the country
Government Planning and Policies
Government can take necessary actions to improve the current level of economy or take corrective actions
Standard of Living Indicators
Compare standard of living over time
Compare standard of living over across countries
International Comparisons
Problems of Measuring National Income
Problems of Non-Monetized Sector
Non-monetary activities especially Agricultural
Underground Economy
Black Market
Non-market Transactions
Productive work in economy does not involve payment or transaction
Problems of Expertise and Modern Machinery
Lacks of machinery and modern advanced machines to calculate country's income
Problems of Double Counting
Intermediate goods included will disrupt the calculation of GDP