Question

Explain five uses of National Income Statistics.

Answer 1

1. Indicates the standard of living: e.g higher NI means higher standards of living and low NI may mean lower standard of living
2. Compares standards of living: a country with high NI is assumed to economically better than another with low NI
3. Assess the performance of the economy overtime: measure performance of a country over time/determine a countries economic development, a country with higher NI is said to be more developed
4. Assists the government in planning the economy
5. Making investment decision by revealing growing and declining sectors
6. Helps to solicit for aids /Grants
7. Makes it possible to determine the extent of dependence on external trade
8. Used in preparing annual National estimates for taxation purposes
9. Trade unions use data to bargain for better salaries used to compare the welfare of people over time