ELEMENTS OF NATIONAL INCOME ACCOUNTING

CONTENT

1. Worked Examples Using the Expenditure Approach
2. Calculation on Output Approach and Income Approach
3. Problems of Computing National Income
4. Uses and Limitations of National Income Estimates
5. Structure and Trends of National Income

Worked Examples Using the Expenditure Approach

The following is the trading account for Nigeria in the year 1978 (in millions)

1. Citizens private expenditure = N35m
2. Government expenditure on goods and services = N15.6m
3. Various stocks at home = N11.8m
4. Exports income from abroad = N13.5m
5. Imports income paid abroad = N10.4m
6. Taxes on expenditure = N7m
7. Capital consumption = N5.8m
8. General subsidies = N1.3m

From the information given above,

Calculate the national income for Nigeria for the year 1278

Solution

National Income = ₦77.2m – ₦23.2m = ₦54.0m

We can use alternative method with this formula.