ECON 102 Lecture Notes - Lecture 7: Income Distribution
Document Summary
To compare the standards of living in different countries. Differences in the definition of national income ; particularly on the commodities to include. Some countries have social security while others do not have. To assess the rate at which an economy is growing. Economic growth: - an increase in a nation"s productive capacity identified by a sustained increase in real national income over a period of time. Economic development: - associated with a rise in national income accompanied by structural changes (e. g. shift from agriculture to manufacturing) To compare the economic performance or the economic growth among different countries. To assist the government in planning the economy. National income assists the government to check on whether its economic objectives are being achieved; National income figures assist the government to assess what policy measures to take in order to correct adverse trends e. g. low investment.
