National income

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national income by mayank

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National income

  1. 1. NATIONAL INCOME Presented by_ Abhishek Bhattacharya Rohan Shrivastav Mayank Bhatt
  2. 2. CONTENTIntroduction Concepts MethodsImportanceConstraints
  3. 3. INTRODUCTION“National income is the money value of all goods and service produced in a country during a year” _J. M.KEYNES
  4. 4. CONCEPTS Gross National Product: Defined as the value of all final goods and services produced during a specific period, usually one year including incomes earned abroad by nationals and excluding incomes earned locally by the foreigners. Gross Domestic Product: Defined as the market value of all final goods and services produced in the domestic economy during a period of one year including income earned locally by the foreigners excluding incomes earned abroad by the nationals.
  5. 5. METHODS OF MEASURING NATIONAL INCOME  Production production method  Income Method  ExpenditureExpenditure Income method
  6. 6. PRODUCTION METHOD Classification into sectorsEstimation of goods and services of each sectorValuation of products in terms of money
  7. 7. PRODUCTIVE SECTORS Primary secondary Territory•agriculture •industries •communications•forest •electricity •banking•fishing •trade •insurance•mining •manufacturing •health •education
  8. 8. INCOME METHOD rentIncome from wageabroad GNI profit interest
  9. 9. EXPENDITURE METHOD GrossIndividual Gov expenses expenses national income
  10. 10. IMPORTANCE OF NATIONAL INCOME To estimate economic development. To know how far development objectives were achieved. To know the contribution of various sectors to national income.
  11. 11. CONSTRAINTS TO NATIONAL INCOME Non availability of reliable statistics. The service of housewives is not included in the national income because this service is not sold in the market. Individuals do not keep correct account of their consumption. Illiteracy and ignorance Lack of proper criteria for measuring the value of services.
  12. 12. THANKS TO ALL

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