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    Uses of National Income Data

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    architjain70
    National income data can be used for several purposes: 1. To measure economic growth by looking at estimates of national income over time at constant prices. 2. To assess the success or failure of economic planning by examining a country's achievements in increasing national income. 3. To estimate per capita income by dividing total national income by total population. 4. To assess the performance of primary, secondary, and tertiary production sectors by analyzing their contributions to national income.

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    Uses of National Income Data

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    architjain70
    27K views2 pages
    National income data can be used for several purposes: 1. To measure economic growth by looking at estimates of national income over time at constant prices. 2. To assess the success or failure of economic planning by examining a country's achievements in increasing national income. 3. To estimate per capita income by dividing total national income by total population. 4. To assess the performance of primary, secondary, and tertiary production sectors by analyzing their contributions to national income.

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    National income data can be used for several purposes: 1. To measure economic growth by looking at estimates of national income over time at constant prices. 2. To assess the success or failure of economic planning by examining a country's achievements in increasing national income. 3. To estimate per capita income by dividing total national income by total population. 4. To assess the performance of primary, secondary, and tertiary production sectors by analyzing their contributions to national income.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    27K views2 pages

    Uses of National Income Data

    Uploaded by

    architjain70
    National income data can be used for several purposes: 1. To measure economic growth by looking at estimates of national income over time at constant prices. 2. To assess the success or failure of economic planning by examining a country's achievements in increasing national income. 3. To estimate per capita income by dividing total national income by total population. 4. To assess the performance of primary, secondary, and tertiary production sectors by analyzing their contributions to national income.

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    Download as doc, pdf, or txt
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    Uses of National Income Data:-

    1:National Income as a measure of economic growth - Estimates of national income at


    constant prices indicate economic growth of a country.

    2:National Income as an indicator of success or failure of planning - If a country has


    adopted planning as a means of economic growth then national income data can help in
    assessing the achievements of planning.

    3: Useful in estimating per capita income - Per capita income is obtained by dividing
    national income by total population of the country.

    4:Useful in assessing the performance of different production sectors - Production units


    of a country are broadly classified into primary, secondary and tertiary sectors. These
    sectors generate factor incomes. The data on factor incomes generated by these sectors
    can be used to measure their relative contributions to national income.

    5:Useful in measuring inequalities in the distribution of income - All individuals so not


    have the same income. It means national income is unequally distributed among people.
    The extent of inequality in a country can be measured from the national income data
    collected through the income distribution methods.

    6:Useful in measuring standards of income - The expenditure method reveals


    consumption expenditure and investment expenditure. If the total consumption
    expenditure is divided by the total investment expenditure we get per capita consumption
    expenditure which indicates the average standard of living of the people of the country.

    7:Makes international comparisons possible - We can compare the economies of any two
    countries on the basis of their national income data.

    Various utilities of the national income estimates can be described as below:


    1 National income estimates help us to know this performance of an economy during one
    year and over a period of years.

    2 National income estimates also tell us about the economic welfare enjoyed by the
    people. We can know the per capital income by dividing national income by population.
    3 on the basis of national income estimate comparison between various economics of the
    world may be made. National income figures for various countries provides us the rates
    of growth in different economies.

    4 In an economy, inter-sector comparison can be made with the help of national income
    statistics
    5 national income figures are inevitable for an economy, which wants to develop with the
    help of economic planning.
    6 National income accounts reflect the structural change in a growing economy.
    7 National income estimated over period of years enable us evaluate the planning.
    8National income estimated are also important in the formation of the budget by the
    finance Minister of the country.

    9 National income estimates are also important because they indicate how the income or
    wealth is distributed among the various classes. Thus we can know whether the national
    income is equally distributed or not.
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