National income can be measured using three methods - the product, income, and expenditure methods. It is important for economic planning and welfare. However, there are difficulties in measurement such as non-monetized transactions, issues with the unorganized sector, and multiple sources of income. National income data provides key information about a country's economic health and production.
ME-314 Introduction to Control Engineering is a course taught to Mechanical Engineering senior undergrads. The course is taught by Dr. Bilal Siddiqui at DHA Suffa University. This lecture is about time response of systems derived by inspection of poles and zeros. First and second order systems are considered, along with higher order and nonminimum phase systems
Control of Switched Reluctance Generator in Wind Energy SystemNereus Fernandes
A wind energy conversion system (WECS) with maximum power tracking (MPPT) using a SR machine operating as a generator is presented. MPPT of the wind turbine is achieved by sensing the wind speed and adjusting the wind turbine shaft speed for optimal tip speed ratio. MPPT using Hill Climbing Technique by perturbing the wind turbine shaft speed in the direction of increasing power is also implemented in the hardware setup. Outer speed loop using PI control generates the current reference used by the inner current loop. Hysteresis current control using soft-chopping is used to control the switched reluctance generator (SRG) phase currents. Initial excitation is provided by a low voltage battery and rated voltage is built-up by self-excitation. A chopper controlled dump resistor is used to maintain the output dc voltage at rated value. Power electronic circuit for the SRG is implemented in hardware using IGBT switches and DSP controller. Wind turbine is emulated using an induction motor and a vector controlled AC drive operating in torque control mode.
Its about economics reforms that were introduced in 1991.
why such reforms were needed ?
what was situation at that time ?
what were the achievement and limitations of economic reforms ?
The presentation talks about why is it necessary to carry out Financial appraisal and the different methods to analyse it. It also discusses the steps involved in a financial appraisal of a project.
ME-314 Introduction to Control Engineering is a course taught to Mechanical Engineering senior undergrads. The course is taught by Dr. Bilal Siddiqui at DHA Suffa University. This lecture is about time response of systems derived by inspection of poles and zeros. First and second order systems are considered, along with higher order and nonminimum phase systems
Control of Switched Reluctance Generator in Wind Energy SystemNereus Fernandes
A wind energy conversion system (WECS) with maximum power tracking (MPPT) using a SR machine operating as a generator is presented. MPPT of the wind turbine is achieved by sensing the wind speed and adjusting the wind turbine shaft speed for optimal tip speed ratio. MPPT using Hill Climbing Technique by perturbing the wind turbine shaft speed in the direction of increasing power is also implemented in the hardware setup. Outer speed loop using PI control generates the current reference used by the inner current loop. Hysteresis current control using soft-chopping is used to control the switched reluctance generator (SRG) phase currents. Initial excitation is provided by a low voltage battery and rated voltage is built-up by self-excitation. A chopper controlled dump resistor is used to maintain the output dc voltage at rated value. Power electronic circuit for the SRG is implemented in hardware using IGBT switches and DSP controller. Wind turbine is emulated using an induction motor and a vector controlled AC drive operating in torque control mode.
Its about economics reforms that were introduced in 1991.
why such reforms were needed ?
what was situation at that time ?
what were the achievement and limitations of economic reforms ?
The presentation talks about why is it necessary to carry out Financial appraisal and the different methods to analyse it. It also discusses the steps involved in a financial appraisal of a project.
Give more definations and Concepts of National Income it includes:
Gross Domestic Product (GDP).
Gross National Product (GNP).
Net Domestic Product (NDP).
Net National Product (NNP). and many more...
National Income and Its Measurement
Techniques
• Inflation, Causes and Controlling
• Business Cycle
• Forms of Business
• Management Functions
• Managerial Skills
• Levels of Management
• Role of a manager
It’s time to check your knowledge on the concepts presented in this section. Refer to the Answer Key at the end of the book for feedback.
1. Mateus is a marketer for a consumer products company. His company is considering marketing a new breakfast drink, but Mateus wants to make certain that there is a sufficient number of consumers in his target audience to make the new product development process worthwhile. Which essential factor of market segmentation is he analyzing?
Accessible
Differentiable
Actionable
Measurable
2. Wall Enterprises is considering developing a new product for a market segment that has been identified by marketing research. However, based on the research, it appears that the market segment may be smaller than originally anticipated. Which essential factor of market segmentation does this reflect?
Accessible
Differentiable
Substantial
Actionable
3. Alma is analyzing the market segment she has identified for a new service to determine whether her firm can reach the consumers in that market within the constraints of her budget, given the resources of the firm. Which essential factor of market segmentation does this reflect?
Accessible
Actionable
Substantial
Measurable
4. Idris has been researching a potential market segment for his company’s new product. He is concerned that, although the product holds considerable promise, the advertising campaign would be beyond the company’s budget. Which essential factor of market segmentation appears to be lacking in Idris’s analysis?
Differentiable
Substantial
Measurable
Accessible
5. Which essential factor in selecting a target market refers to the ability to accurately determine the size of the market in terms of either sales volume or number of customers?
Actionable
Differentiable
Measurable
Substantial
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
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Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
2. Lecture Plan
• Objectives
• Circular Flow of Economic Activities and Income
– Two Sector Model
– Four Sector Model
• Macroeconomic variables
• Concepts of National Income
• Measuring National Income
• Uses of National Income Data
• Difficulties in Measurement of National Income
3. Objectives
• To explain the circular flow of economic activity and
income.
• To introduce the concepts of aggregates, stock and
flow and final goods.
• To explain various concepts of national income, like
GDP, GNP and NNP.
• To discuss and analyze the different methods to
measure national income.
• To understand the advantages of national income
calculation in global perspective.
4. Circular Flow of Economic Activities and
Income
The simple model of the circular flow assumes two players
Firms
• Produce and supply the goods and services.
• Require various factors of production to produce these goods and
services.
Households
• Include a set of individuals living in the same house
• Take joint decision about the consumption of goods and services.
• Provide services in terms of factor inputs to the firms
• Get paid for these services by firms which households spend on
consumption.
• Money flows from firms to households as factor payments and from
households to firms as expenditure on goods and services.
• It is a circular flow of money or income
5. Circular Flow of Income
(Two Sector Economy)
(Wages, Rent, Interest and Profits)
Factor Payments
(Y)
Consumption
expenditure
(C)
In the equilibrium Y=C+S=C+I=E=O
FirmsHouseholds
Goods and
Services (O)
Factor Inputs
Financial
Market Investment
(I)
Savings
(S)
6. Circular Flow of Economic Activities
and Income
• Value of output produced (Y) = value of output sold (O)
• Value of output sold = Sum of consumption expenditure (C) and
investment expenditure (I).
Y=O=C+I=E……(1)
• Income is either consumed or saved (S).
Y=C+S………….(2)
C+I=Y=C+S………(3)
• Therefore: I = S…………(4)
• Savings are withdrawal of money from the circular flow
• Investment is injection of money into the circular flow
• For equilibrium savings should be equal to investments
• Hence Y=O=E
7. Circular Flow of Income
(Four Sector Economy)
The third sector is Government (G)
• Government Spending
– On provision of public utility goods and services.
– Provides salaries to the households
– Pays to firms for purchases of goods and services
• Government Revenue
– Households and firms pay various taxes and other payments and
provide factor inputs to the government.
– Government borrows from the financial market to fill revenue gap.
The fourth sector is the external sector
• Imports (M): Outflow of income occurs when the domestic firms buy
goods and services from foreign ones.
• Exports (X): Inflow of income takes place when foreign firms buy
goods and services from domestic ones
8. Circular Flow of Income
(Four Sector Economy)
Government
(G)
Remittances
for purchases
Foreign sector
(X-M)
Salaries
Taxes
Taxes
Consumption
Expenditure
Financial Market
Investment
(I)
Savings
(S) FirmsHouseholds
Factor Inputs
Goods
(O)
Factor
Payments
Imports
(M)
Imports
(M)
Exports
(X)
Exports
(X)
National Income=C+I+G+(X-M)
9. Circular Flow of Income
(Four Sector Economy)
• National income includes expenditures on consumption investment,
government and net of exports (X-M)
National Income=C+I+G+(X-M)
• Since national income can either be consumed, or saved, or paid as
tax to the government:
C+I+G+(X-M)=C+S+T
I+G+(X-M) =S+T
• Sum of private investment and expenditure on net exports is equal to
the sum of savings and tax revenue. Thus:
I+G+X =S+T+M
• Therefore, W=J
• At equilibrium, total injections are equal to total withdrawals.
10. Macro-economic Variables
• Aggregate Demand and Aggregate Supply
–Aggregate Demand is the sum of demand for all goods and
services by all the consumers for a given period of time.
• aggregate demand (AD) for consumer goods i.e.
consumption demand (C)
• aggregate demand for capital goods i.e. (I).
Thus AD = C+I
• Aggregate supply is the total national output produced and supplied
by all the factors of production in an economy.
• It refers to the supply of all goods and services in the economy for a
given period of time.
• Aggregate supply (AS) consists of
–supply of consumer goods (C) and
–Supply capital goods (where capital comes from savings (S),
Hence AS=C+S
11. Macro-economic Variables
• Stock and Flow
– Stock may be defined as any economic variable which has
been accumulated at a specific point of time
• like money, assets and wealth.
– Flow includes the variables which increase (inflows) and
decrease (outflows) the stock, over a period of time.
• like income, consumption, saving and investment
Stock=Inflows-Outflows
• Intermediate and Final Goods
– Intermediate goods (and services) are items purchased by
firms for using them in production of some other good of utility.
– Also known as producer goods because they are used as
inputs in the production of other goods.
12. Macro-economic Variables
• Capital formation
– The process of savings being converted into investment is known as
capital formation
– Gross Capital Formation refers to the aggregate of additions to fixed
assets (Fixed Capital Formation) and increase in stocks of inventories
during a period of time.
• Employment
– An employed person is willing and capable to work in a productive activity
and is engaged for certain number of hours per week, whether working for
self or someone else.
– The population of any country is divided into working population (age
group of 16 to 65 ) and dependents.
• Government Expenditure and Revenue
– Government Expenditure is which is made from public exchequer.
– Government Revenue is income received by government in various
forms, e.g. Taxes
13. National Income
• National income is defined as the money value of all
the final goods and services produced in an economy
during an accounting period of time, generally one
year.
Concepts of National Income
• Gross Domestic Product (GDP)
• Gross National Product (GNP)
• Net Domestic Product (NDP)
• Net National Product (NNP)
• Per Capita Income
14. Gross Domestic Product
• Gross Domestic Product (GDP): GDP is the sum of
money values of all final goods and services produced
within the domestic territories of a country during an
accounting year.
GDP= C+I+G+(X-M)
• GDP at market price: includes the final value of goods
and services also includes indirect taxes and excludes
the subsidies given by the government.
• GDP at factor cost is the money value of final goods
and services based on the cost involved in the process
of production.
Gross Domestic Product at factor cost
= GDP at Market Prices –Indirect Taxes+ Subsidies
15. Gross National Product
• Gross National Product (GNP): GNP is the aggregate
final output of citizens and businesses of an economy in
a year.
• GNP may be defined as the sum of Gross Domestic
Product and Net Factor Income from Abroad (NFIA).
GNP = GDP + NFIA
GNP = C+I+G+(X-M)+NFIA
• Net Factor Income from Abroad: difference between
income received from abroad for rendering factor
services and income paid towards services rendered by
foreign nationals in the domestic territory of a country.
16. Net Domestic Product and
Net National Product
• Net Domestic Product
= GDP-Depreciation
• Net National Product (NNP)
= GDP–Depreciation +NFIA
Or =GNP–Depreciation
• Thus NNP is the actual addition to a year’s wealth and is the sum of
consumption expenditure, government expenditure, net foreign
expenditure, and investment, less depreciation, plus net income earned
from abroad.
= C+I+G+(X–M)–Depreciation + NFIA
• NNP at Factor Cost is the sum total of income earned by all the people
of the nation, within the national boundaries or abroad
• It is also called National Income.
• NNP at Factor Cost = NNP at Market Prices –Indirect Taxes+ Subsidies
17. Real and Nominal National
Income
• National income estimated at the prevailing prices, is called national
income at current prices or Nominal National Income, or Money
National Income or national income at current prices.
• National income measured on the basis of some fixed price, say
price prevailing at a particular point of time, or by taking a base year,
is known as national income at constant prices, or Real National
Income or national income at constant prices.
•GDP deflator is the ratio of nominal GDP in a year to real GDP of that year
•GDP deflator measures the change in prices between the base year and
the current year.
deflatorGDP
GDPNominal
=GDPReal
18. Per Capital Income and
Personal Income
• Personal income is the total income received by the
individuals of a country from all sources before direct taxes
in one year.
Personal Income = National Income –Undistributed Corporate Profits –
Corporate Taxes – Social Security Contributions + Transfer Payments
+ Interest on Public Debt
• Personal Disposable Income is the income which can be
spent on consumption by individuals and families.
Personal Disposable Income = Personal Income – Personal Taxes
• Per capita income is the average income of the people of
a country in a particular year.
PopulationTotal
IncomeNational
=IncomeCapitaPer
19. Methods of measuring national
income
• In equilibrium
Output=Income=expenditure
• Hence there are three approaches to the
measurement of GDP:
• Product (or Output) Method: National Income by
Industry of Origin
– Final Product Method
– Value Added Method
• Income Method or National Income by Distributive
Shares
• Expenditure Method
20. Product (or Output) Method
• The market value of all the goods and services produced
in the country by all the firms across all industries are
added up together.
• Process
– The economy is divided on basis of industries, such as
agriculture, fishing, mining and quarrying, large scale
manufacturing, small scale manufacturing, electricity, gas, etc.
– The physical units of output are interpreted in money terms
– The total values added up. (GDP at market price)
– The indirect taxes are subtracted and the subsidies are added.
(GDP at factor cost)
– Net value is calculated by subtracting depreciation from the total
value (NDP at factor cost).
21. Limitations of Product Method
• Problem of Double Counting:
– unclear distinction between a final and an
intermediate product.
• Not Applicable to Tertiary Sector:
– This method is useful only when output can be
measured in physical terms
• Exclusion of Non Marketed Products
– E.g. outcome of hobby or self consumption
• Self Consumption of Output
– Producer may consume a part of his production.
22. Income Method
• The net income received by all citizens of a country in a particular
year, i.e. total of net rents, net wages, net interest and net profits.
(GDP at factor cost).
• It is the income earned by the factors of production of a country.
• Add the money sent by the citizens of the nation from abroad and
deduct the payments made to foreign nationals (individuals and firms)
(GNP at factor cost) or Gross National Income (GNI).
Process:
• Economy is divided on basis of income groups, such as
wage/salary earners, rent earners, profit earners etc.
• Income of all the gruops is added, including income from abroad
and undistributed profits.
• The income earned by foreigners and transfer payments made in
the year are subtracted.
GNI = Rent + Wage + Interest +Profit + Net Income from Abroad-
Transfer payments
23. Limitations of Income Method
• Exclusion of non monetary income: Ignores the non-
monetized section of economic activities.
– Economic activities that contribute to national income, but due to
their non monetary nature, they go unrecorded. For e.g. a farmer
and family working in their own field.
• Exclusion of Non Marketed Services: People
undertake a particular activity that are difficult to ascertain
in money value. E.g. mother’s services to the family.
24. Expenditure Method of Measuring
National Income
• The total expenditure incurred by the society in a
particular year is added together to get that year’s
national income.
• Components of Expenditure:
– personal consumption expenditure
– net domestic investment
– government expenditure on goods and services, and
– net foreign investment
Limitations
• Ignores Barter System
• Ignores Own Consumption
• Affected by Inflation
25. Uses of National Income Data
• National income is the most dependable indicator of a
country’s economic health.
• Difference between GDP and GNP indicates the
contribution of net income earned abroad
• Necessary for Economic planning: useful aid in judging
which sectors should be given more emphasis
• A measure of economic welfare.
– higher aggregate production implies more and more goods and
services being available to people
• Helps in determining the regional disparities, income
inequality and level of poverty in a country.
• Helps in comparing the situations of economic growth in
two different countries.
26. Difficulties in Measurement of National
Income
• Non monetized transactions: Exchange of goods and services
which have no monetary payments, like services rendered out of
love, courtesy or kindness are difficult to include in the computation
of national income.
• Unorganized sector: Contribution of unorganized sector are
unrecorded. It is very difficult to identify income of those who do not
pay income tax.
• Multiple sources of earnings: Part time activity goes
unrecognized and such income is not included in national income.
• Categorization of goods and services: In many cases
categorization of goods and services as intermediate and final
product is not very clear.
• Inadequate data: Lack of adequate and reliable data is a major
hurdle to the measurement of national income of underdeveloped
countries.
27. Summary
• GDP is the sum of money values of all final goods and services produced
within the domestic territories of a country during an accounting year. It can be
measured at current or constant prices.
• GNP is the aggregate final output of citizens and businesses of an economy in
one year. NNP is GNP less depreciation.
• The average income of the people of a country in a particular year is per capita
income for that year.
• National income can be measured by product method, income method and
expenditure method.
• National income accounting data are of utmost importance for the economy of
any country; such data reveal the aggregate production of the economy and
also help to determine the total expenditure and total income of that country.
• Difficulties in measuring national income include multiple counting, exclusion of
non market transacted services, self consumption of output, inflation or
deflation, confusion about informal sector, etc.
• National income is considered as a measure of economic welfare. As national
income rises, the aggregate production of goods and services rises. Therefore,
there is a positive relation between increase in national income and welfare.