National Income,Concepts,Methods of Measuring and Problems in Measuring the national Income

1. NATIONAL INCOME
MEANING,CONCEPTS,METHODS AND PROBLEMS IN MEASUREMENT
BY ROHIT SHARMA

2. Meaning of National Income…..
National Income refers to the aggregate income earned by the normal resident
of the nation during a given period as a result of their productive services.
According the Brooman,”National Income id the sum of the total of final goods
and services produced by the labour and wealth of the nation during a period
of one year in a country.”
Concepts of National Income……….
I. Gross National Product
GNP is the aggregate of the value of all the final goods and services produced
in a period of one year including net income earned from Abroad.
GNP=GDP + NET EARNING FROM ABROAD

3. II.Gross Domestic Production
Final value of Goods & Services Manufactured in a country in a particular period of time is Gross
Domestic Production
III.Net national Product
When the value of Depreciation is deducted from GNP than the value is NNP.
IV.National Income at Market Price
When the goods and services produced are valued at market price than is known as National
Income at Market Price.
GDP= Price*Quantity of Goods and services
GDP=GNP-Net earning from Abroad
NNP=GNP-Depreciation

4. V. National Income at Factor Cost
When the Cost of factors that supply for production is added than it is known as National
Income at Factor Cost
VI. Personal Income
Submission of the all income received by an Individual.
VII. Disposable Income
The income which is left to use is known as Disposable Income.
Rent+Wages+Interest+Profit=National Income at Factor Cost
Personal Income-Direct taxes=Disposable Income

5. Measurement of National Income
There are there methods for calculating National Income…
National
Income
Product Income Expenditure

7. Problems in Measurement of National
Income….
I. Non Monetised Sector
II. Illiteracy
III. Occupational Specialization
IV. Double Counting
V. Foreign Company