Defination of national income

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Defination of national income

  1. 1. Presented by Md. Zeeshan Alam MBA 1ST semester Excel Business Academy Bangalore
  2. 2. According to Marshall National Income defined as.“ Thelabour and capital of a country, acting upon its naturalresources, produce annually a certain net aggregate ofcommodities, material and immaterial, including servicesof all kinds.
  3. 3.  NATIONAL INCOME MEAN’s The concept of national income occupies an important place in economic theory. National Income is the flow of goods and services of a nation during a year National income is the aggregate money value of all final goods and services in a country during a year.
  4. 4. Concepts of National Income includes: Gross National Product (GNP). Net National Product (NNP). Gross Domestic Product (GDP). Net Domestic Product (NDP).
  5. 5. Gross National Product (GDP) is defined as the sum of the gross domestic product and net factors income from abroad. GNP= C+I+G+(X-M) +(R-P)Where ,C= Total consumptionI= Total InvestmentG= Govt ExpenditureX= ExportsM=ImportsR= ReceiptsP= Payments
  6. 6. 2. Net National Product (NNP). :Net National Product (NNP) is the net production of final goods and services in a country during the year. It is GNP- depreciation. NNP also referred to as National Income at Market Prices. NNP= GNP-D
  7. 7. 3. Gross Domestic Product (GDP): Gross Domestic Product (GDP) is the money value of all final goods and services produced in the domestic territory of a country during a year. GDP= C + I + G (X-M)
  8. 8. 4. Net Domestic Product (NDP): When depreciation is subtracted from GDP, we get net domestic product. NDP=GDP-D

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