Page 50 - DECO402_Macro Economics

Unit-4: Sectorial Accounting

b. Transaction system present by Liyontif. Notes
c. Method of the study of flow of liquid present by Morris Copland.

The importance of social and national accounting

1. The knowledge of economic structure- We are gets knowledge of economic structure by the
use of social accounting. With the analysis of it national income is get the information about
the structure of production and consumption level of tax and savings.
2. Evaluation of the effect of government policy: By the help of national income accounts can
evaluate easily the effect of government policy.
3. The evaluation of business industries: It is help to evaluate the activities of big business
industries.
4. The guide of change of economy: Social income accounting is shows the need of change in
economy and provide a useful guide for that change.
5. Light on the importance of the different field and flow of economy: Social income accounting
are highlight the related information of different field and flow of economy.
6. Helper to get the multinational objective: National income accounting is proved helper to
get the multinational objective.
7. Insights on the mutual dependency of different field: Social income accounting provide the
insight on the mutual dependency on different field and describe it.

Different part of national and social accounting

The different part of social accounting is as follows:

1. Gross national Product
2. Net national Product.
3. National Income
4. Personal Income
5. Disposable Income.

4.9 Summary

y Social accounts are keeping by double account similar with private and bussiness accounts
and social accounts are presents as the table of social accounts. This table is call basic of social
account. In the rows of this table presents the receiving of different field and columns in debtors
of different fields. The records of every entry show in a special rows and special column. Social
accounts is free of mistake or not, then it is necessary for it that the addition of every rows is
equally to the total of it equivalent column.

4.10 Keywords

y Government Sector- Account are present of income and expenditure as a private sector within
government sector.
y Foreign Sector- The accounts in present the income and expenditure of external sector within
it.

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