0
What are the limitations of using national income figures to compare standard of living?
Wiki User
∙ 9y ago
It does not show the discrepancies of who has the money. A country may have a large income and show that average personal income is high, but that money may be in the hands of just a few while everyone else is in poverty.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
What are the importance and limitations of national income statistics?
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.
Why do economists prefer to compare real GDP figures for different years instead of GDP figures?
economists prefer to compare real gdp figures for different years instead of comparing nominal gdp figures. why?
What are the limitations of using national income figures in comparing the standards of living between different countries?
Almost never, because gross income gaps can largely distort statistics, if 50% of the population are earning very high, while the rest 50 much less, then the average may well be guided by the upper-half.
Does the national income figure accurately reflect the living standard of a population?
national income statistics are very useful as living standards are measured using GDP per capita. The higher the GDP per capita the better the living standards. However, national income statistics are subject to a number of drawbacks which make its usefulness debateble in economic practise. 1. NY Statistics do not take into account the opportunity cost of high production that is leisure time forgone. 2. GDP per capita figures do not take into consideration negative externalities generated from economic development e.g pollution. 3. It does not take into account condition of work e.g doctor patient ratio. 4. Composition of NY that is, GDP may be high because of increased government spending on amunation which does not improve living starndards.
What is the incidence of poverty in the Philippines?
Poverty incidence among Filipino families increased from 24.4 percent in 2003 to 26.9 percent in 2006. Poverty incidence refers to the proportion of families or individuals with per capita income less than the per capita poverty threshold to the total number of families or individuals.
What are the importance and limitations of national income statistics?
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.
Why do economists prefer to compare real GDP figures for different years instead of GDP figures?
economists prefer to compare real gdp figures for different years instead of comparing nominal gdp figures. why?
What are the 3 ways to compare plane figures?
Compare the number of sides and angles. Compare the types of angles. Compare the number of parallel lines.
What is the importance of national income figures?
National income figures helps governmental institutions understand the state of the economy. If the national average for income has increased, then businesses are growing.
What are budget figures based on?
Budget figures may be based on actual, budgeted, or standard costs. These categories are not mutually exclusive.
What 2 historical figures can compare to martin Luther king?
i have one harriet tubman
What is 1000 in standard exponential form in 2 significant figures?
1.0*103
Where can one find the latest figures for the national deficit?
The latest figures for the national deficit can be found by reading political publications about the economy. The national deficit is the amount that the government owes that has to be paid to such countries as China. Therefore any political publication about the economy in the content or the index should have information about the national deficit.
What is 40 and a half million written as a standard number?
Expressed in figures, this is equal to 40500000.
How are the figures on the Palette of Narmer similar to those on the Mesopotamian Royal Standard of Ur?
The figures are similar because the king is shown as larger than anyone else.
Is there any validity in rule-of-thumb ratios for all corporations?
Only as a starting point. As an analyst, you must then carefully compare your company to its competitors in the industry. Not all companies are alike and therefore one can not apply one set standard to evaluate it. You must compare you numbers to year over year figures to identify trends either bad or good. Finally, these numbers must still be evaluated against the integrity of the company's financial reporting and their accounting style. Only as a starting point. As an analyst, you must then carefully compare your company to its competitors in the industry. Not all companies are alike and therefore one can not apply one set standard to evaluate it. You must compare you numbers to year over year figures to identify trends either bad or good. Finally, these numbers must still be evaluated against the integrity of the company's financial reporting and their accounting style.
What is 0.001 in standard form to the correct 3 significant figures?
0.001 in standard form is 1*10-3. The original number may not be correct to 3 significant figures, but if it is, it should have been written as 0.00100 to indicate the degree of precision. In that case the standard form would be 1.00*10-3.
