The following points highlight the top uses of national income data. The uses are: 1. Population 2. Composition of output 3. Distribution of income 4. Different national currencies 5. Statistical limitations. Use # 1. Population: A higher national income clearly does not mean a higher standard of living if the extra income is shared among more people. The standard of [...]
Get the answer of: Are NNP and NNI Identical? National income is the net value of all goods and services (national product) produced annually in a nation. There are two measures of national income. One is the market price measure and the other is factor cost measure. The national income at market price has to be adjusted properly to arrive [...]
The following points highlight the three methods for measuring national income. The methods are: 1. The Product (Output) Method 2. The Income Method 3. The Expenditure Method. 1. The Product (Output) Method: The most direct method of arriving at an estimate of a country's national output or income is to add the output figures of all firms in the economy [...]