Dr. Ranu Kumar from the Department of MBA at GGS College of modern technology in Kharar Mohali (Punjab) presented on the topic of national income. National income is defined as the total value of goods and services produced in a country annually. Marshall defined national income as the net annual aggregate of commodities produced by a country's labor and capital acting on its natural resources. Pigou provided a better definition, defining national income as the objective income of a community that can be measured in money, including income derived from abroad. Modern calculations of national income use Pigou's criteria of measuring money income within a community, including from other countries. There are two main methods to calculate national income: the production method

1. Presented By
Dr. Ranu Kumar
Department of MBA
GGS College of modern technology
Kharar Mohali (Punjab)

2.  Meaning of NI
National income is an uncertain term which is used
interchangeably with national dividend, national output
and national expenditure. National income has been
defined in a number of ways. In common parlance,
national income means the total value of goods and
services produced in a country annually (or given
period).

3.  According to Marshall “The labour and capital of a
country acting on its natural resources produce
annually a certain net aggregate of commodities,
material and immaterial including services of all kinds.
This is the true net annual income or revenue of the
country or national dividend.”

4. According to A.C. Pigou “National income is
that part of objective income of the community,
including of course income derived from abroad
which can be measured in money.”
A.C. Pigou definition is better than the
Marshallian definition. A.C. Pigou definition has
proved to be more practical also. While
calculating the national income now-a- days,
estimates are prepared in accordance with the two
criteria laid down in this definition.

5.  There are two well known methods of calculating
National Income.
(1). Production Method.
(2). Income Methods.
A thirds method of national income is social Accounting.

6. There are various problems in calculating National
Income. These problems discussed as under.
I. Non-monetary transactions.
II. Petty production.
III. Inadequate and unreliable statistics.
IV. Problem of double accounting.
V. Transfer payment.
VI. Environment damages.
VII. Second- hand Transaction.
VIII. Illiteracy and Ignorance