Tag: Social Accounting and Global Trade

Factors that determine a Country’s Standard of Living

The standard of living is defined as the level of wealth experienced by a county which is indicated by the average disposable income of the population, ownership of capital equipment, the level of research and access to modern technology and the quality and quantity goods and services enjoyed by citizens. Level of goods and services…...

National Income

The national income of a country is the total income earned by that country from the production of goods and the provision of services in a given year after deducting depreciation. It therefore measures the level of economic activity of a country within a year. Note depreciation of assets is taken into account when measuring…...

Economic Growth and Development

Economic growth is the expansion of national income.  The rate of expansion is usually measured from one year to the next. Economic growth can be achieved if countries increase their capacity to produce. Economic Development is sustained economic growth accompanied by policies that bring about structural changes such as increase in exportation, decrease in importation,…...

International Trade

It is an advantage for countries to be self-sufficient, but there are reasons why trade must take place between nations. Reasons for International Trade (a) Lack of certain natural resources to produce essential goods. Oil which is important to economic life must be imported into countries that do not posses that natural resource. (b)Lack of…...

Balance of Trade & Balance of Payment

A countries balance of payments account records all the flow of money between residents of that country and the rest of the world.  A country’s balance of payments thus shows the difference between the receipt for goods and services exported and payments made for goods and services imported and movements of capital in and out…...

Balance of Payment Problems

If a country continues to experience deficits in its visible and or invisible balances it will affect its level economic activity. Deficits mean there is not enough money to purchase the goods and services required by citizens. Methods of Correcting Balance of Payment Problems 1. Tariffs (taxes on imports) Taxes increase the cost of items…...