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National Income: Presented By: N.Naveen 09G21E0031
National Income: Presented By: N.Naveen 09G21E0031
Presented by:
N.Naveen
09G21E0031
NATIONAL INCOME
The sum of total of the values of all goods and services produces
in a year..
Definition:
‘A National Income estimated measures the volume of
commodities and services turned out during a given period
without duplication’.
It indicates the per capita income with which we can compare
the levels of development of all the countries
Income method
Expenditure method
Production method=Income
method=expenditure income
Sectors
Primary Secondary Tertiary
Manufacturing Education
Other services
National Income concepts
GROSS DOMESTIC PRODUCT[GDP]:
NNP=GNP-DEPRICIATION
NET INCOME:
NI=NNI+SUBSIDIES
PRODUCTION METHOD
This method based on the total production of
a country during a year
1950-51 59 13 28 100
1980-81 42 22 36 100
2002-03 24 24 52 100
2005-06 20 26 54 100
2007-08 17 29 54 100
INCOME METHOD
Factors of production together produce output
and Income
GNI=Rent+Wage+Interest+Profit+Income
from abroad
EXPENDITURE METHOD
PERCAPITA INCOME[PCI]
PCI=National income/Population
PERSONAL INCOME[PI]
PI=Wages+Rent+Interest+Profit+Others
CONCLUSION
From the above discussion, we may easily
concluded that national income plays an integral
role in the development of an economy. It is the
important measure of standard of living of the
people of a count.
Continuous increase in production can
be considered as an index of progress that an
economy has achieved.
Thank You