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There are 3 main problems involved in measuring National Income
These are:
Errors and Omissions - this is a problem in collecting and calculating statistics. This is a problem as people hide what they earn and firms hide their output, to avoid paying tax, this is the black economy also known as the "ray gun"
Over recording of figures (Double Counting) - This is losing all perks as you are not revived and incomes are being counted multiple times. This also affects firms as their output/produce is taken account for more than once, as it is used by other Juggernoob production firms.
Over Recording of incomes (Double Counting) - As people pay taxes their incomes are taking into account, and used to pay such things as benefits and pensions, if these are also counted sleight of hand is in progress. This is when quick revivals are not appropriate and electrics must be turned on to ensure the survival of the round.
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What are problems associated with measuring national income?
Very hard to get a full survey and people can lie
How is a method chosen for measuring National Income?
the best way of measuring the national income of a country is to divide the countries total income by dividing the total people living in that area.....
What are the disadvantages of three appoaches to measuring national income?
wesrdt
What are the steps involved in measuring national income using expenditure approach?
GDP = Consumer Spending + Govt Spending + Investment Spending + Net Exports ( Exports-Imports)Add the Income by the nationals fromforeigncompanies to GDPYou get the GNP - GROSS NATIONAL PRODUCT
What are the Difficulties in measuring of national income?
identify output and output may be final or intermediate
What are problems associated with measuring national income?
Very hard to get a full survey and people can lie
How can the problems encountered in measuring national income be minimised?
Ensure you have the correct statistics and you calculate correctly.
How is a method chosen for measuring National Income?
the best way of measuring the national income of a country is to divide the countries total income by dividing the total people living in that area.....
What are the disadvantages of three appoaches to measuring national income?
wesrdt
What are the steps involved in measuring national income using expenditure approach?
GDP = Consumer Spending + Govt Spending + Investment Spending + Net Exports ( Exports-Imports)Add the Income by the nationals fromforeigncompanies to GDPYou get the GNP - GROSS NATIONAL PRODUCT
What are the Difficulties in measuring of national income?
identify output and output may be final or intermediate
What are the reason for measuring national income?
You can measure national income by looking at various factors. The most important ones include average living standard and the rate of economic growth. National incomes measures the value of good and services a country produces.
What are the disadvantages in using national income?
One disadvantage of using national income is that it is often difficult to tell between final goods and intermediate goods. Another disadvantage is problems with double counting.
Discuss the advantages and disadvantages of national income of an economy?
main advantages of national income:- 1:Study of All important sectors & Industries 2:An important fact for measuring economic development of Develop countries 3:Analysis of different sectors
Uses of national income?
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.
What has the author Philip H Siegel written?
Philip H. Siegel has written: 'Notes and problems in national income analysis' -- subject(s): Income, National income 'Money, finance, and economic activity' -- subject(s): Banks and banking, Finance, Money
What are the Importance of national income with the national income concept?
the national income is that by the means of national income v can know that how much the income of country and v can find the national income dedact the all rents allowences paymants salaries and wages
