The income approach to measure national income in the country of Ghana is not very accurate. Much of the Ghana economy relies on the barter system.
The 3 approaches to national income accounting are the output approach, the income approach and the expenditure approach.
There are three approaches through which national income can be calculated including; output approach, income approach and expenditure approach.
is national income a satisfactory measure
how to compute national income. Through; expenditure approach, income approach, and input and output approach. Now for the expenditure approach you add G+I+C+(X-M) Income approach; addition of the factors of production
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Assumes there is a single best measure of profits.
National income at factor cost is the measure of national income or output based on the cost of factors of production.This allows the effect of any subsidy or indirect tax to be removed from the final measure. National income at market prices is the total income receivable plus taxes on production and imports less subsidies.
National income does provide some measure of social welfare, but it is by no means a perfect measure. National income only captures economic activity, and does not take into account other important factors such as environmental quality, leisure time, or income distribution. In addition, national income does not always reflect changes in welfare that may occur over time, such as increases in life expectancy.
national and output method
national income measures the wealthy that exists in an economy.national income statistics wl determine national output under the fomular:output=income=expenditure!however the appropriateness of national income ar a measure of output is compromised by the weaknesses inherent in obtaining national income data!national income disregards underground economy or the black market which as a result economies that constitute a significant amount of such markets would have an understated national income figure thus its true measure of national out put wl nt be realised if these statistics are used!
The importance of national income statistics is to show a national income figures and show the performance of the company. The limitations are there are room for errors in report , some categories are not accurate or are misrepresented , and they do not measure welfare as a source of income.
There are so many uses of national income statistics. This is commonly used to measure the economy and living standards of the people in a country.