What is the significance of national income accounting or social accounting? The gap may likely to arise because of the discrepancies between aggregate output and aggregate expenditure. The excess of anticipated expenditure over the available output of base prices leads to inflationary gap which may result in price rise. By the help of national income accounting we can compare the standard of living of different countries or of the people of same country of different times.
What are the limitations of statistics? First of all, there's the sample size.
If you don't have a big enough sample, you can't give a very reliable answer. Of course, with limited resources it might not be possible… to collect a large sample. There's a tradeoff between sample size and reliability. Also, there are aspects of statistics which are countrintuitive and tend to confuse people.
For instance, Simpson's Paradox. We all know that lots of sunlight is good for crops. But if you do a survey National income statistics crop yield and compare it to weather records, you might actually find that the sunnier it is, the less the crops grow.
This is different from the problem of small sample size outlined above. I'm not talking about a few freak years with lots of pests throwing the statistics out. The problem is that when it's sunny, it generally isn't raining. So the years with lots of sunshine have lower crop yields because they have less rain.
It is possible to correct for this, by looking at records of both sunshine and rainfall. Basically, if you're looking for a direct relationship between two variables, you need to think of all the other variables that might have an effect and take those into account.
But I think this increases the sample size needed, if you overdo it. Another fallacy is to assume that correlation implies causality.
For instance, you could do a survey and discover that poorer neighbourhoods have more crime. You might conclude that living in such a place makes someone a criminal.
But this might not be the case. It might be that wealth affects both crime and place of residence, i.
Or there might be some other variable we haven't thought of yet. Actually, statistics is an exact science. It is the application of the results that leads to problems. Perhaps the most commonly encountered limitation of statistics is the misunderstanding that a statistical measure can be used as a measure of the accuracy of a measurement.
Statistics, in general, provide very little information on the intrinsic accuracy of a measurement. Statistics can only provide an estimate of the minimal error that might be in the measurement. The actual error can be much greater than the minimal statistical error. Another way to put it is that statistics measure the variability of a measurment, not the accuracy of a measurment.
There is also a possibility for errors. Uses of national income statistics? National income statistics are used to: Increase in wages for a sector that is generating a large percentage income for the economy.
There are so many uses of national income statistics. This iscommonly used to measure the economy and living standards of thepeople in a country.The statistics for Gross Domestic Product (GDP) are computed as part of the National Income and Product Accounts.
This national accounting system is the source of much of the information we have about the economy. Nov 13, · Income and Poverty in the United States: These tables present data on income, earnings, income inequality & poverty in the United States based on information collected in the and earlier CPS ASEC.
Homepage of the National Center for Health Statistics.
What is 'National Income Accounting' National income accounting is a bookkeeping system that a government uses to measure the level of the country's economic activity in a given time period. What is meant by national income? National income measures the monetary value of the flow of output of goods and services produced in an economy over a period of time. Population Projections for the Period of to at National Level. Population projections for the period of to at National level, Tanzania Mainland and Tanzania Zanzibar.
Historical Surveys. An overview of surveys and programs administered by the National Center for Health Statistics that have been completed. National Salary Rates for Jobs - What is the average salary in the United States?
Find national salary comparisons, list of average salaries by profession. Introduction: The National Accounts Main Aggregates Database presents a series of analytical national accounts tables from onwards for more than countries and areas of the world.
It is the product of a global cooperation effort between the Economic Statistics Branch of the United Nations Statistics Division, international statistical. The statistics include gender, age, income and tax distribution, income source, country and geographical area.
They are based on the Survey of Personal Incomes (SPI) an annual sample survey of.