National income

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National income by Mind Map: National income

1. -reduced sales and profits -unemployment -reduced government revenue -state must allocate scarce resources - health and safety

2. -fines and prison sentences -enforce laws and carry out investigations -funding towards awareness campaigns -lowering of indirect taxes -lowering of taxes on labour

3. -GDP per capita -nature of goods/services produced -inflation/deflation -distribution of wealth -national income statistics do not take into account unpaid work -GDP per capita applies to the average person -welfare/well being is not indicated by GDP figures (hidden/shadow economy)

4. -measures economic growth -economic planning -measures standard of living -to calculate the debt/GDP ratio (calculates how indebted a country is) -to calculate an EU member states contribution to the EU budget

5. Reasons for calculating national income

6. Limitations of national income

7. Impact of the hidden economy on society and the economy

8. How can the government reduce the size of the hidden economy