Importance of reading national income
Discuss the importance of reading National Income.
Or, Discuss the need for national income lessons.
Or, Analysis the importance of reading national income.
Or, Explain the significance of National Income lesson.
Introduction:
Importance of National Income Lesson: The importance of National Income Lesson is discussed below:
1. Indicators of progress and deterioration:
National income is an indicator of economic progress and deterioration of the country. Whether a country's economic development or deterioration is taking place is known from the reading of national income. If the real national income of the country is increasing, it should be understood that progress is being made. If the national income continues to decrease, it should be understood that the economic condition of the country is deteriorating.
2. Standard of Living Indicator:
National Income indicates the standard of living of the people of the country. What is the standard of living of the people of a country is the national income of that country. known to be The national income of the United States is very high. Therefore, the standard of living of the people of that country is also very improved.
3. Interim Comparison:
Interim comparison of national income gives a clear idea about the trend of economic condition of a country. From 1995 to 2007, the extent to which the economic condition of Bangladesh has improved or deteriorated can be known by the interim comparison of national income.
4. Economic Status:
National income is a map of the economic status of the country. To get a clear idea about the economic condition of any country by studying National Income. goes The higher the national income of the country, the more developed the country is. Again, the lower the national income of the country, the more underdeveloped the country is
5. Finding Different Information:
Studying national income is very important to get different information about the economy. From the national income account, accurate information can be obtained about the consumption, savings, investment, capital formation etc. of the people of a country.
6. Comparison between different countries:
The economic conditions of all the countries of the world are not equal. Based on the level of economic development, which country is developed, which country is developing and which country is underdeveloped. Only by comparing national incomes can such a classification be made among the countries of the world.
7. Contribution of different sectors:
The economy of any country has sectors such as agriculture, industry, business and commerce. The contribution of these sectors to the national economy is known in the national income reading. Moreover, the national income reading can also tell which sectors are improving and which sectors need to be improved.
8. Distribution of wealth:
From the National Income Account, one can get an accurate idea about the distribution of wealth in the country. Whether a country's wealth is being equitably distributed, accumulating in the hands of a few, is revealed by a review of national income.
9. Monetary Policy:
The government has to formulate monetary policy to prevent the problems of inflation and deflation. Analysis of national income is also essential for such policy making.
10. Budget Formulation:
Various types of information are required for the formulation of government budget. These data are available from national income statistics. Therefore, it is absolutely necessary to know the calculation of national income for preparing the country's budget.
11. Planning:
Planning is done to achieve economic development. For making these plans, the per capita income of the people of the country, consumption, savings, investment, production rate of the country, contribution of various sectors etc. are needed. These data are known from the analysis of national income. Therefore, the study of national income is particularly necessary for the formulation and implementation of the country's development plan.
Conclusion:
Given the appropriate discussion, it can be said that National Income is a measure of the overall economic condition of a country. Therefore, the importance of reading national income in the economy of any country is immense. Professor Benham has rightly said, "A detailed review of national income is the best way to get an idea of the financial condition of a country."