1. WELCOME
 PRESENTATION TOPIC ON
NATIONAL INCOME

2. NATIONAL INCOME
DEFINITION: “National Income is
the money value of the end result
of all economic activities of the
nation”

3. Points with National Income
 Expressed in monetary terms
 Value of final goods and services
 Flow of final goods and services
 Exclude ‘pure exchange’ transactions

4. There are two types of economy
 Closed Economy: An economy which has
no economic transactions with rest of the
world
 Open Economy: An economy which has
transactions with rest of the world, i.e
export less imports

5. There are two activities to get
national income
 Economic Activities: human activities
 Non Economic Activities: spiritual,
psychological, social and political

6. National Income at a factor of cost
 In the form of payments: wages, rent
profit, indirect tax and subsidies

7. Measures of National Income
 Gross National Product (GNP): “it is the
value of final goods and services
produced during a specific period”
 Gross Domestic Product (GDP): “it is the
market value of all final goods and
services produced by all enterprises
located with in a country.”
 Net National Product (NNP): it is defined
as GNP – Depreciation.