ABSTRACT

The most direct way to examine how an economy is performing is to look at the level and at the rate of growth of its income - the income of its inhabitants, the goods and services made available to them, the amount of their expenditure. Then national income is a measure of the economic activity within the frontiers of the area under consideration. Income from employment in Scotland was consistently the UK level. Construction and the public utilities have grown in importance in both economies but faster in Scotland than in the UK. The total of expenditure looks at the total of purchases made by consumers, investors and government within the territory. These purchases will usually include the purchase of some goods not made within the territory - in the case of Scotland, imports from outside the UK, such as Japanese cars, and also imports from the rest of the UK, such as English apples.