national income by mayank

1. NATIONAL INCOME
Presented by_
Abhishek Bhattacharya
Rohan Shrivastav
Mayank Bhatt

2. CONTENT
Introduction
Concepts
Methods
Importance
Constraints

3. INTRODUCTION
“National income is the
money value of all goods
and service produced in a
country during a year”
_J. M.KEYNES

4. CONCEPTS
 Gross National Product:
 Defined as the value of all final goods and services
produced during a specific period, usually one year
including incomes earned abroad by nationals and
excluding incomes earned locally by the foreigners.
 Gross Domestic Product:
 Defined as the market value of all final goods and
services produced in the domestic economy during a
period of one year including income earned locally by
the foreigners excluding incomes earned abroad by
the nationals.

5. METHODS OF MEASURING NATIONAL INCOME
 Production
production method
 Income
Method
 Expenditure
Expenditure Income
method

6. PRODUCTION METHOD
Classification into
sectors
Estimation of goods and
services of each sector
Valuation of products in
terms of money

7. PRODUCTIVE SECTORS
Primary secondary Territory
•agriculture •industries •communications
•forest •electricity •banking
•fishing •trade •insurance
•mining •manufacturing •health
•education

8. INCOME METHOD
rent
Income
from wage
abroad
GNI
profit interest

9. EXPENDITURE METHOD
Gross
Individual Gov
expenses expenses national
income

10. IMPORTANCE OF NATIONAL INCOME
 To estimate economic
development.
 To know how far development
objectives were achieved.
 To know the contribution of
various sectors to national income.

11. CONSTRAINTS TO NATIONAL INCOME
 Non availability of reliable statistics.
 The service of housewives is not included in the
national income because this service is not sold in
the market.
 Individuals do not keep correct account of their
consumption.
 Illiteracy and ignorance
 Lack of proper criteria for measuring the value of
services.

12. THANKS
TO
ALL