National Income

People are classified into three types namely poor, rich and middle class people based on their individual income.

Countries are classified into two types as developed country and developing country based on their national income.

National Income

National income is measure of the total value of goods and services produced by an economy over a period of time, normally one year.

Commonly national income is called as Gross National Product or National Dividend. It is the total value of goods and services produced and income received in a year by domestic residents of a country.

Gross Domestic Product is the total value of goods and service produced by the factor of production within the geographical boundaries of a country.

Gross National Product

Net National Product is arrived by making some adjustment with regard to deprivation. That is we arrive at NNP by deducting the value of deprivation from Gross National Product.

NNP = GNP (-) Deprivation

Per Capita Income

When there is increase in Per capita income it result in increase of peoples standard of living.

It is obtained by dividing the national income by that of the population of the nation.

Per Capita Income = Nation Income / Population

$1670

Japan 38,894.47 $ America 52,194.90 $ England 41,602.98 $

Product method, income method and expenditure method.

Black Money

Black money is nothing but the unaccountable money. That is earned through illegal activities, illegal business and money through corruption.

Non –monetization

It leads to miscalculation in the national income.

Domestic work, housekeeping, social service, volunteer activities and unpaid social services.

Primary sectors include activities such as agriculture, forestry, fishing, mining and quarrying.

Secondary sectors include activities such as manufacturing industries, electricity, gas, water supply and construction.

Service sector includes activities such as trade, hotel, transport, storage, communication, finance, insurance, real estate and social services.

Primary Sector – 17.32% Secondary Sector – 29.02% Tertiary Sector – 53.66%

It means non intervention of government.

Protective function, administrative function, social security function and economic functions.

Read Income

Money Income

Nominal Income

Gross National Product

2 methods

3 methods

4 methods

5 methods

GNP (-) Depreciation

Net domestic product (-) Depreciation

Per capita Income (-) Depreciation

Gross domestic product (-) Depreciation

220 dollars

950 dollars

2930 dollars

600 dollars

Trade

Construction

Agriculture

Telecommunication

Total value of money

Total value of food gains

Total value of Industrial products

Total value of goods & services

Output

Income side

Expenditure side

Savings side

Expenditure

Income

Savings

Investment

Richness of people

Poverty of people

Living standard of people

Literacy of people

15.8%

25.8%

58.4%

12.8%