Скачать или смотреть National Income | GDP | NDP | GNP | NNP | Production Method | Income Method | Expenditure M. |Part 1

National income is referred to as the total monetary value of all services and goods that are produced by a nation during a period of time. In other words, it is the sum of all the factor income that is generated during a production year.
National income serves as an indicator of the nation’s economic activity. It can be calculated by three methods such as income method, value-added method, and expenditure method.
Income method is mainly based on the incomes generated by the factors of production such as labour and land. The expenditure method is based on investment and consumption, while the value-added method is mostly based on the value added to a product during the stages of production.

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Formula for National Income

National income = C + G + I + X + F – D
Where,
C denote the consumption
G denote the government expenditure
I denote the investments
X denote the net exports (Exports subtracted by imports)
F denote the national resident’s foreign production
D denote the non-national resident’s domestic production.

The national income of a country can be measured by three alternative methods:

Product Method.

Income Method.

Expenditure Method.

A variety of measures of national income and output are used in economics to estimate total economic activity in a country or region, including gross domestic product (GDP), gross national product (GNP), net national income (NNI), and adjusted national income (NNI adjusted for natural resource depletion – also called as NNI at factor cost). All are specially concerned with counting the total amount of goods and services produced within the economy and by various sectors. The boundary is usually defined by geography or citizenship, and it is also defined as the total income of the nation and also restrict the goods and services that are counted. For instance, some measures count only goods & services that are exchanged for money, excluding bartered goods, while other measures may attempt to include bartered goods by imputing monetary values to them. 

Gross domestic product (GDP) is the standard measure of the value added created through the production of goods and services in a country during a certain period. As such, it also measures the income earned from that production, or the total amount spent on final goods and services (less imports).

The gross national income, previously known as gross national product, is the total domestic and foreign output claimed by residents of a country, consisting of gross domestic product, plus factor incomes earned by foreign residents, minus income earned in the domestic economy by nonresidents.

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