CSEET · Economic and Business Environment · National Income Accounting and Related Concepts
Which of the following is a use of national income data for a government planner?
National income data helps planners assess the share of agriculture, industry and services in the economy. This sectoral composition shows the structure and growth pattern of the economy and guides policy and resource allocation, which is a key use of national income accounting.
- ADeciding the dividend a company should declare
- BAssessing the relative contribution of agriculture, industry and services to the economyCorrect
- CCalculating the income tax of an individual
- DPreparing the bank reconciliation statement of a firm
Explanation
Sectoral breakdown of national income shows the structure of the economy and helps planners set priorities and allocate resources. The other options relate to company, individual or bank-level accounting, not macro-level national income analysis.
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