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    What Are The Limitations of Using National Income

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    pardingsonmusamba
    The document discusses the limitations of using national income statistics for third world countries. Some key limitations are that national income statistics do not account for non-market transactions, income distribution and poverty levels, environmental costs and benefits, limited data availability and reliability, and limited economic activities in third world countries.

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    What Are The Limitations of Using National Income

    Uploaded by

    pardingsonmusamba
    19 views11 pages
    The document discusses the limitations of using national income statistics for third world countries. Some key limitations are that national income statistics do not account for non-market transactions, income distribution and poverty levels, environmental costs and benefits, limited data availability and reliability, and limited economic activities in third world countries.

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    What are the limitations of using national income

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    The document discusses the limitations of using national income statistics for third world countries. Some key limitations are that national income statistics do not account for non-market transactions, income distribution and poverty levels, environmental costs and benefits, limited data availability and reliability, and limited economic activities in third world countries.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    19 views11 pages

    What Are The Limitations of Using National Income

    Uploaded by

    pardingsonmusamba
    The document discusses the limitations of using national income statistics for third world countries. Some key limitations are that national income statistics do not account for non-market transactions, income distribution and poverty levels, environmental costs and benefits, limited data availability and reliability, and limited economic activities in third world countries.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 11

    What are the limitations of using national

    income statistics for third world countries


    OUTLINE

     INTRODUCTION

     LIMITATIONS OF USING NATIONAL INCOME STATS

     CONTROL MEASURES

     CONCLUSION
    INTRODUCTION

    What is national income statistics?

    Are set of rules , techniques and calculations to measure the total value of final
    goods and services produced by a country in a year.

     Third world countries – these are developing countries. (Zimbabwe, Mozambique)


    Limitations of using national income statistics

     Non-market transactions
     Income distribution and poverty levels
     Environmental cost and benefits
     Data availability and reliability
     Quality of life indicators
     Non monetary transaction
     Limited range of economic activities
    Non market transaction

     As non-market goods and


    services are those not bought
    or sold directly on markets and
    therefore do not have an
    associated market price, they
    tend to fall into the categories
    of public goods or common
    goods.
     For example, food, and other
    supplies needed to meet family
    shortages.
    Income distribution and poverty levels

    Inequality Distribution
     Provide a total measure of economic
    activities but may not review the
    distribution of income within the country.
     high inflation, and stagnant wages
    Data availability and reliability

     Often face challenges in accurately collecting and reporting national income


    statistics.

     Due to limited resources, inadequate statistical infrastructure and lack of


    comprehensive data collection system can result in incomplete or unreliable data
    Limited range of economic activities

     Third world countries often relies heavily on a few sector or industries e.g.
    agriculture or extractive industries

     This limited economic diversification can lead to an overemphasis on certain


    activities and incomplete representation of the overall economc land scape
    Environmental cost and benefits
    Environmental cost-benefit analysis, or CBA, refers to the economic appraisal of
    policies and projects that have the deliberate aim of improving the provision of
    environmental services or actions that might affect (sometimes adversely) the
    environment as an indirect consequence

    Examples include the costs of cleaning up oil spills or cleaning a polluted river. A
    company may also incur fines or other penalties or lose sales if it acquires a poor
    environmental reputation.
    Thank you

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