Scribd
Upload
123 views4 pages

National Income Refers To The Money Value of All Goods and Services Produced in An Economy

National income refers to the value of all goods and services produced in a country over a period of time. National income statistics are useful for several reasons: they help measure living standards and allow comparisons over time and between countries; provide important data for long-term and short-term economic planning; and show how different sectors of the economy are distributed. National income statistics also allow countries to compare economic performance, inform budgetary policies, indicate economic growth, help with investment decisions, and track national expenditures.

Uploaded by

FPictures
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
123 views4 pages

National Income Refers To The Money Value of All Goods and Services Produced in An Economy

National income refers to the value of all goods and services produced in a country over a period of time. National income statistics are useful for several reasons: they help measure living standards and allow comparisons over time and between countries; provide important data for long-term and short-term economic planning; and show how different sectors of the economy are distributed. National income statistics also allow countries to compare economic performance, inform budgetary policies, indicate economic growth, help with investment decisions, and track national expenditures.

Uploaded by

FPictures
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 4

2.The usefulness of national income statistics.

National income refers to the money value of all goods and services produced in an economy
over given period of time. National income can be measured through the output method, the
expenditure method and income method. National income statistics is a data generated from the
value of goods and services produced by a country's in economy.

The following are the usefulness of national income statistics:

Help to measure standard living of the people: through national income statistic help to
compare the standard of living of people in different countries, and of people living in the same
country at different times for Example through that we can measure the increase or decrease in
welfare.

Used for economic planning: The national income statistics its important tools for long term
and short term economic planning, Example through national income statistics help in
productive activities in the various sectors of the economy like data relating to product,
expenditure, income investment, export and taxation become the basis of scientific economic
planning and forecasting.

It show the distribution made by the various sectors of the economy: This is another
usefulness of national income statistics where by different sectors of economy such as
agricultural sector, manufacturing sector, as well as industrial sector through national income
statistics its show how those sectors are being distributed.

It used to compare the economic performance of the country with other country: The
country with high national income will be performing better than the country that have low
national income for Example the Tanzania government uses its income to check and compare
how Tanzania is with regard to other nations.

National income is usefulness in budgetary policies: this also we another usefulness of


national income statistics where by through budgetary policies a country tries to prepare their
budget within the framework national income data so due to that the taxation and borrowing
policies are arranged to avoid fluctuation in national income.
It is indicator for changes in the economic growth of a country: specifically by using the
output method it is possible for Example to identify the level of import and the effects of taxes
and subsidies, not only that but also to identify the distribution of industrial activity, and in spite
of that Al's specifically by using income method and expenditure method.

Investment decision making: Through national income statistics its provide investors with
numerous opportunities of getting the needed information, about the common market trends that
is crucial in saving the time used in cost carrying the market research of a place.

The maintenance of national expenditure: National income statistics its show the
expenditure division which includes investment expenditure and consumption expenditure which
enables in maintenance of capital stock of community and indicates the true domestic
investment.

Generally apart from that there are different problems which hinder the national income
statistics to be successful such as political instability, social instability, corruption and
embezzlement of funds.
References

Made in Tanzania; Economics for Tanzanians by DAMAS MICHAEL MUSHI.


The usefulness of national income statistics.

You might also like