Data on National accounts are essential for economic management.
\n\u2022 Gross Domestic production comprises three sectors agriculture, Industry and
\nservices.
\n\u2022 The importance of economic structural changes with relative contribution
\nof economic sector to gross domestic production, can be analyzed..
\n\u2022 Considering the structure of gross domestic production, economic policies can be
\nimplemented to uplift the relevant economic sectors.
\n\u2022 National income accounts can be used to illustrate the distribution of income among
\nfactors of production.
\n\u2022 This shows the percentages of incomes distributed to labour and property
\nassures.
\n\u2022 National accounts can be used to evaluate the economic condition of a country and
\ninternational comparison.
\n\u2022 Per capita income is computed with the ratio between National income \/ production
\nand mid year population of the country.
\nNational Income \/ production
\nPer-capita Income = ___________________________
\nMidyear population
\n-116-
\n\u2022 Economic growth is explained as the continuous increase in real national out put.
\n\u2022 Economic growth can be measured with the gross National production at constant
\nprices .
\n\u2022 The following limitations can be seen when preparing the National income accounting
\ndata.
\n\u2022 Transaction of non market activities
\n\u2022 Illegal economic activities
\n\u2022 Informal economic activities
\n\u2022 Increase in quality of production
\n\u2022 Non-consideration of the influence of the environment.
\n\u2022 Excluding the interest payments on government debt.
\n\u2022 Transaction of non market activities are
\n\u2022Household services in a household.
\n\u2022Services of self employment.
\n\u2022Subsistence economic activities
\n\u2022 National production is under estimated as non-inclusion of the above effective
\neconomic activities.
\n\u2022 Examples of illegal economic activities are
\n\u2022 Illegal production and sales of liquor, prostitution, bribery and corruption military
\nand insurgent activities.
\n\u2022 Through income and expenditure flows occur in all these activities, the value of
\nNational production is underestimated because they are not included.
\n-117-
\n\u2022 Informal economic activities are explained as the activities performed by poor
\npeople and are not recognized by the government
\n\u2022 characteristics of informal economic activities areas are as follows.
\n\u2022 Informal documentation
\n\u2022 Depends on family labour.
\n\u2022 Failure to count for tax payments and social security contributions.
\n\u2022 Failure to conform to various government rules and regulations
\n\u2022 Production values derived from the above economic activities are not officially
\nreported,therefore, National accounts are under estimated.
\n\u2022 When calculating National accounts only quantity is considered but not increase in
\nquality.
\n\u2022 Unfavorable influence on the environment when the production process is explained as
\nenvironmental deviation.
\n\u2022 Because of these unfavorable influences to welfare are not included, National income
\nis overestimated.
\n\u2022 Considering these effects of environment national accounts are adjusted are called
\ngreen national accounts.<\/p>\n","protected":false},"excerpt":{"rendered":"
Data on National accounts are essential for economic management. \u2022 Gross Domestic production comprises three sectors agriculture, Industry and services. \u2022 The importance of economic structural changes with relative contribution of economic sector to gross domestic production, can be analyzed.. \u2022 Considering the structure of gross domestic production, economic policies can be implemented to uplift […]<\/p>\n","protected":false},"author":842,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[54,2685],"tags":[],"class_list":["post-5477","post","type-post","status-publish","format-standard","hentry","category-economics","category-unit-4-en"],"acf":[],"yoast_head":"\n