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USES OF NATIONAL INCOME STATISTIC, Siti Nur Athirah binti Mohd Kamal …
USES OF NATIONAL INCOME STATISTIC
:check: One of the significant indicators that is used to gauge the economic health of a country.
:check: It represents the total currency value of all goods and services produced over a specific time period.
:check: It is use to describe the size of the economy of a nation.
Standard of living indicators
Reflects the individuals' welfare because it shows how much goods and services can be consumed by each individual in a country
Can be measured by GDP per capita
Can be compared based on two different perspectives:
To compare the standard of living overtime
To compare the standard of living across countries
Government planning and policies
A very useful tool for the government to formulate their economic planning
The available statistic of national income can guide the policymakers in planning for the future
The government can take necessary measures to improve the current level of the economy or take the right corrective actions
Sectoral Contributions
Primary sector (agriculture, forestry, mining and quarrying)
Secondary sector (manufacturing and construction)
Tertiary sector/services sector (electricity, gas and water; wholesale and retail trade, accommodation and restaurants; transport, storage and communication; finance, insurance, real estate and business services; government services and other services)
The policymakers can recognize which economic sectors are more or less likely contributing to the national income
A time series analysis can also show the revolutionary changes of each sector with time in general
The primary sector is the key contributor in less develop countries
International comparisons
To make international comparisons of people's living standards or real income
Can compare the absolute size of one economy relative to another
How well of the average individual is in each country
Siti Nur Athirah binti Mohd Kamal
2019831738
KBA2462A