2. Hello!
I am Jayden Smith
I am here because I love to give presentations.
You can find me at @username
2
3. MEANING OF NATIONAL
INCOME
3
MONETARY
VALUE
GOODS &
SERVICES
1 FINANCIAL
YEAR
A COUNTRY
= NATIONAL
INCOME
The monetary value of all the final goods &
services produced in one financial year in a
country.
4. National Income: Definition
From the modern point of view, national
income can be defined as “the net output
of commodities and services flowing
during the year from the country’s
productive system in the hands of the
ultimate consumers.”
- Simon Kuznets
5. 5
Importance of National Income
The following points highlight the top eleven reasons for
growing importance of national income studies in recent years.
The reasons are:
1. In formulating economic policies
2. In doing economic planning
3. In assessing and shaping economy’s structure
4. Assessing and analyzing inflationary and deflationary gaps
5. In planning budgetary policies
6. In assessing and estimating national expenditure,
7. In distribution of Grants-in-aid and others.
8. In doing standard of living comparison
9. In analyzing international sphere
10.In allocating resources between defense and development
11.In analyzing public sector
7. 7
Concept of GDP
Gross domestic product is the money value of all final goods and
services produced in the domestic territory of a country during
an accounting year. The concept of domestic territory has a
special meaning in national income accounting.
• GDP is an indicator of the size of the economy. It reflects the
aggregate of consumption, investments, spending by the government
and net export (export – import).
• Gross domestic product gives us a measure of the overall activity of
our economy.
• GDP is equally divided into CONSUMPTION, INVESTMENT(buying
machineries, building factories, construction of houses and change in
inventories.), GOVT. EXPENDITURE and NET EXPORTS (Exports-
Imports).
• GDP is calculated from the spending angle in an economy. It is a
quantitative measure of the overall economic activity in a country or
economic zone.
8. ◎ GDP at Constant Price
◎ GDP at Current Price
◎ GDP at Factor Price
◎ GDP at Market Price
GDP at FC = GDP at MP - Indirect Taxes +Subsidies
GDP at MP =GDP at FC + Indirect Taxes - Subsidies
Various Measures of GDP
9. 9
Concept of GNP
Gross National Product or GNP is the total market value of
everything (i.e. goods and services) produced by the residents
of the country during a particular accounting year.
GNP = GDP + NFIA (where NFIA is the net factor income from abroad).
GNP measures the levels of production of any person or corporation of a
country. For example, the American GNP measures the production levels
of any American or American-owned entity, regardless of where in the
world the actual production process is taking place, and defines the
economy in terms of the citizens.
GNP measures the compensation and investment income received by
nationals working or investing abroad.
GNP is less commonly referred to than GDP, but is best described as the
measure of national output.
10. 10
Difference between GDP & GNP
Basis for Comparison GDP GNP
Meaning
The worth of goods and services
produced within the geographical limits of
the country is known as Gross Domestic
Product (GDP).
The worth of goods and services
produced by the country's citizens
irrespective of the geographical location is
known as Gross National Product (GNP).
What is it?
Production of products within the
country's boundary.
Production of products by the enterprises
owned by the residents of the country.
Basis Location Citizenship
Calculation
GDP = Consumption + Investment +
Government Spending + Net Export
GNP = GDP - NFIA
On which scale
productivity is measured?
On a local scale On international scale
Focus on Domestic production Production by nationals
Outlines
The strength of the country's domestic
economy.
How the residents are contributing
towards the country's economy.
Conclusion
We calculate GDP, we take into
consideration whatever is produced within
the local borders of the country and so it
includes the goods and services produced by
the foreign nationals also
But if we talk about GNP, only the production
done by the country’s citizens is considered
whether they are inside or outside the country
and the contribution of foreign citizens are
completely excluded.
12. “
Quotations are commonly printed
as a means of inspiration and to
invoke philosophical thoughts from
the reader.
12
13. White
Is the color of milk
and fresh snow, the
color produced by
the combination of all
the colors of the
visible spectrum.
You can also split your content
Black
Is the color of ebony
and of outer space. It
has been the
symbolic color of
elegance, solemnity
and authority.
13
14. A picture is worth a thousand
words
A complex idea can be
conveyed with just a single
still image, namely making it
possible to absorb large
amounts of data quickly.
14
23. Let’s review some concepts
Yellow
Is the color of gold,
butter and ripe lemons.
In the spectrum of
visible light, yellow is
found between green
and orange.
Blue
Is the colour of the clear
sky and the deep sea. It
is located between violet
and green on the optical
spectrum.
Red
Is the color of blood,
and because of this it
has historically been
associated with
sacrifice, danger and
courage.
Yellow
Is the color of gold,
butter and ripe lemons.
In the spectrum of
visible light, yellow is
found between green
and orange.
Blue
Is the colour of the clear
sky and the deep sea. It
is located between violet
and green on the optical
spectrum.
Red
Is the color of blood,
and because of this it
has historically been
associated with
sacrifice, danger and
courage.
23
30. Presentation design
This presentation uses the following typographies and colors:
◎ Titles: Nixie One
◎ Body copy: Varela Round
You can download the fonts on these pages:
https://www.fontsquirrel.com/fonts/nixie-one
https://www.fontsquirrel.com/fonts/varela-round
Yellow #f8bb00 Orange #ed4a00
Fucsia #e8004c
Blue #00acc3 Aqua #00d1c6
Lime #bbcd00
Green #65bb48 Gray #617a86
Light Gray #a1becc
You don’t need to keep this slide in your presentation. It’s only here to serve you as a design
guide if you need to create new slides or download the fonts to edit the presentation in
PowerPoint®
30
31. Credits
Special thanks to all the people
who made and released these
awesome resources for free:
◎ Presentation template by
SlidesCarnival
◎ Photographs by Unsplash
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32. SlidesCarnival icons are editable shapes.
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● Change line color, width and style.
Isn’t that nice? :)
Examples:
32
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