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C9: MEASURING NATIONAL INCOME bubur chacha 1 - Coggle Diagram
C9: MEASURING NATIONAL INCOME
DEF
:forbidden:
aggregate income
earned by it nations
thru production of goods and services for a certain period (usually in year)
important concept
GDP
: final goods and services produced within a country Included the Foreign workers in Malaysia.
GNP:
final goods and services produced by the residents included the malayaian that works abroad.
*Methods/ Approaches
Link Title
Product approaches
secondary sector: manufacturing
factory
construction
tertiary/ services sector
transportation
education
health care
customer services
tourism
primary secto: nature
mining
quary
agriculture
forestry
Income approaches
Expenditure approaches
USES
sectoral contribution
national planning
economy policy
national expenditure
economic perfomance
distribution of income
standard living comparison
*DIFFICULTIES IN CALCULATING NI
false information
People do
not disclosed their income
or underestimate their income to avoid paying tax.
multi-occupation
Eg: full time employees sells bugers at nights.
The income in full time job included in the national income calculation but not the income in part time job
(Full vs part time job)
double counting
Usually in
product method
. Implies the possibility of intermediate goods being included in the national income more than once.
less sophisticated machinery
not able to provide sufficient
machine or system to key in the data in calclutaing the national income.
problem of expertise
lack of profesional in data, statisticians, programmer
illiteracy
inproductive in accountancy record
informal records - information cannot be reached
non monetized sector
speacially in under develop country
because its rely on agriculture sector which cannot be marketed because of self consumed
