National income and its calculation
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This document discusses the national income of the United Arab Emirates (UAE). It defines national income as the total value of final goods and services produced in a country in one year. It then outlines three approaches to calculating national income: expenditure, income, and production. It provides details on UAE's national income calculated through these three methods, noting oil and gas, foreign investment, and trade as major components. It also discusses UAE's bilateral trade relationship with Australia.
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National Income Accounting
Output is split into components of aggregate demand.
Analysing domestically produced goods and services.
National income
National income refers to the total value of final goods and services produced in a country in one year. There are several ways to measure national income, including GDP, GDI, NNP, and NI. GDP is the total market value of goods and services produced within a country in a year. It can be calculated using the production, income, and expenditure approaches. Other key metrics include per capita income, which is total income divided by population, and NNP and NDP, which are GDP and GNP minus depreciation. National income data provides information on a country's economy, growth trends, production sectors, living standards, and helps guide government policymaking.
Measurement of national income
The document discusses three methods for measuring national income: the value added/output method, income method, and expenditure method. It focuses on explaining the value added method. This method calculates national income by adding the net value added at the factor cost by all producing units during an accounting year within a country's domestic territory. It also discusses steps for estimating national income which includes primary, secondary and tertiary sectors, and how gross domestic product at market prices is calculated by finding the gross value added for each sector and adding them together.
National income concepts
1. The document defines several concepts related to national income:
2. Gross Domestic Product (GDP) is the total value of all final goods and services produced within a country in a given year. It is calculated as the sum of consumption (C), gross investment (GI), government spending (G), and net exports (exports - imports).
3. Gross National Product (GNP) is GDP plus income earned from abroad (foreign assets), minus income earned domestically by foreign entities.
4. Net National Product (NNP) is GNP minus depreciation on capital goods like buildings and equipment. NNP at market prices uses market valuations, while NNP at factor cost adjust
National Income in India, Concept and Measurement
National income is defined as the money value of all final goods and services produced in a country during one year. It can be measured using the product method, income method, and expenditure method. The key concepts are GDP, GNP, NDP, NNP, GDP at factor cost and market price. Problems in estimating Indian national income include large non-monetized transactions. National income statistics are important for economic planning and policymaking.
Methods of measuring National Income
National income can be measured using three methods:
1) The value added or product method measures the market value of final goods produced. It deducts intermediate goods and costs from total output.
2) The income method measures payments (rent, wages, interest, profit) to factors of production. It sums labour income, capital income, and mixed income.
3) The expenditure method measures total domestic expenditure by summing household consumption, investment, government spending, and exports minus imports.
national income
National income is the total value of goods and services produced in an economy over a period of time. It can be measured using the final product approach, value added approach, and expenditure approach. The final product approach sums the market value of all final goods and services. The value added approach sums value added at each stage of production. The expenditure approach sums all final expenditures on goods and services, including consumption, investment, government spending, and net exports. There are challenges in accurately measuring national income, such as double counting, transfer payments, and difficulties in valuing non-monetary activities.
National income
National income is the total value of final goods and services produced in a country in one year. After independence, India established the National Income Committee to compile estimates. National income includes contributions from the primary, secondary, and tertiary sectors. It is measured using methods like expenditure, output, and income, which take factors like GDP, GNP, NDP, and NNP into account. National income plays a vital role in measuring a country's economic development.
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National Income Accounting
Output is split into components of aggregate demand.
Analysing domestically produced goods and services.
National income
National income refers to the total value of final goods and services produced in a country in one year. There are several ways to measure national income, including GDP, GDI, NNP, and NI. GDP is the total market value of goods and services produced within a country in a year. It can be calculated using the production, income, and expenditure approaches. Other key metrics include per capita income, which is total income divided by population, and NNP and NDP, which are GDP and GNP minus depreciation. National income data provides information on a country's economy, growth trends, production sectors, living standards, and helps guide government policymaking.
Measurement of national income
The document discusses three methods for measuring national income: the value added/output method, income method, and expenditure method. It focuses on explaining the value added method. This method calculates national income by adding the net value added at the factor cost by all producing units during an accounting year within a country's domestic territory. It also discusses steps for estimating national income which includes primary, secondary and tertiary sectors, and how gross domestic product at market prices is calculated by finding the gross value added for each sector and adding them together.
National income concepts
1. The document defines several concepts related to national income:
2. Gross Domestic Product (GDP) is the total value of all final goods and services produced within a country in a given year. It is calculated as the sum of consumption (C), gross investment (GI), government spending (G), and net exports (exports - imports).
3. Gross National Product (GNP) is GDP plus income earned from abroad (foreign assets), minus income earned domestically by foreign entities.
4. Net National Product (NNP) is GNP minus depreciation on capital goods like buildings and equipment. NNP at market prices uses market valuations, while NNP at factor cost adjust
National Income in India, Concept and Measurement
National income is defined as the money value of all final goods and services produced in a country during one year. It can be measured using the product method, income method, and expenditure method. The key concepts are GDP, GNP, NDP, NNP, GDP at factor cost and market price. Problems in estimating Indian national income include large non-monetized transactions. National income statistics are important for economic planning and policymaking.
Methods of measuring National Income
National income can be measured using three methods:
1) The value added or product method measures the market value of final goods produced. It deducts intermediate goods and costs from total output.
2) The income method measures payments (rent, wages, interest, profit) to factors of production. It sums labour income, capital income, and mixed income.
3) The expenditure method measures total domestic expenditure by summing household consumption, investment, government spending, and exports minus imports.
national income
National income is the total value of goods and services produced in an economy over a period of time. It can be measured using the final product approach, value added approach, and expenditure approach. The final product approach sums the market value of all final goods and services. The value added approach sums value added at each stage of production. The expenditure approach sums all final expenditures on goods and services, including consumption, investment, government spending, and net exports. There are challenges in accurately measuring national income, such as double counting, transfer payments, and difficulties in valuing non-monetary activities.
National income
National income is the total value of final goods and services produced in a country in one year. After independence, India established the National Income Committee to compile estimates. National income includes contributions from the primary, secondary, and tertiary sectors. It is measured using methods like expenditure, output, and income, which take factors like GDP, GNP, NDP, and NNP into account. National income plays a vital role in measuring a country's economic development.
2. national income
National income is the total value of all final goods and services produced in a country in a year. It can be measured using three methods - the product or value added method, income method, and expenditure method. The product method sums the value added at each stage of production. The income method adds up incomes from factors of production. The expenditure method equals total consumption and investment expenditures. National income is important because it indicates a country's overall economic activity and standard of living.
National Income
National income is measured using three main methods: the production method, income method, and expenditure method. It is the total value of all final goods and services produced in an economy in a given period. National income data is important for measuring economic growth, distribution of wealth, and government budgeting and planning. However, there are difficulties in measuring national income such as the large non-monetized sector in many developing countries, unwillingness of people to reveal income data, problems with data collection, calculating depreciation, and avoiding double counting.
national income ,GNP, GDP, NOMINAL AND REAL INTEREST RATES& PPP'S
National income refers to the total money value of all final goods and services produced within a country in a given year. It is used to measure the overall economic activity and standard of living in a country. GDP is a key measure of national income and is defined as the total market value of all final goods and services produced within a country in a given period of time. GDP can be calculated using the expenditure approach, income approach, or output approach and includes consumption, investment, government spending, and net exports. While GDP is a useful measure, it does not account for all factors that affect economic well-being such as leisure, environmental quality, and non-market activities.
Measurement of National Income
Introduction to national income, methods of measurement of national income, GDP(Gross domestic production), GNP(Gross national Product), NNP(Net National Product), PI(Personal Income), DI(diposable income), PCI(Per Capita Income), Importance of national income
Gdp and nnp ppt
This document discusses key concepts in microeconomics and national income accounting:
- Microeconomics is the study of how individuals, households, firms, and governments make economic decisions and how their interactions in markets determine prices and quantities of goods and services, allocation of resources, and distribution of goods and income.
- National income accounting measures the total value of all final goods and services produced in a nation in a given period of time. Key concepts include GDP, GNP, NDP, NNP, GDP/GNP at market price and factor cost.
- Personal income, disposable income, private income are further breakdowns of national income accounting that measure income available to individuals/households after accounting for various
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THIS SLIDES WILL WILL HELP YOU IN WHAT IS GDP WHICH THINGS NOT INCLUDE IN GDP FORMULA OF GDP AND ALSO DEFINE ITS EACH FACTOR AND WHAT IS GNP EXAMPLES OF GNP DIFFERENCE BETWEEN NDP AND NNP AND ALSO DIFFERENCE BETWEEN REAL GDP AND NOMINAL GDP AND HOW TO CALCULATE GDP DEFLATOR EVERY TOPIC IS DEFINE IN THIS SLIDES VERY CLEAR AND WITH EXAMPLES.
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This document defines and compares different methods of calculating national income and GDP. It discusses calculating GDP at market prices versus factor cost, and how GDP is the sum of final goods and services produced domestically but excludes earnings of citizens working abroad. It also defines related terms like GNP, NNP, real versus nominal national income, per capita income, personal disposable income, and compares the product, income, and expenditure methods of calculating national income.
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National income
The document discusses how a nation determines its national income and whether the results are always accurate. It describes three common methods used to calculate national income - the product or output method, income method, and expenditure method. It then provides details on Nepal's economy, the main sources and composition of its national income, and challenges in obtaining accurate measurements due to issues like a lack of records, unstable politics, and income from illegal activities.
concepts of national income
This document defines and explains key concepts related to measuring a nation's economic activity, including:
- Gross Domestic Product (GDP) is the total market value of goods and services produced within a country in a year. GDP is calculated as consumption + government spending + investments + exports - imports.
- Gross National Product (GNP) includes the income earned abroad by a country's citizens, but excludes income earned within the country by foreigners.
- Net National Product (NNP) is GNP minus depreciation on capital. NNP is also called national income at market price.
- There are three main methods to measure national income: output/production, income, and expenditure. Each
National income
National income is defined as the total value of goods and services produced annually in a country. It includes all income received by households, businesses, and the government in the form of wages, rents, interest and profits. Gross domestic product and gross national product are key concepts used to measure national income. There are several methods used to calculate national income, including the product method, income method, expenditure method, and value added method. National income data is important for economic planning, policymaking, research, and analyzing factors like per capita income and income distribution.
Concept and method national income in india 5
National income is defined as the total money value of all final goods and services produced in an economy during a year. It is measured using product, income, and expenditure methods. The key concepts are GDP, GNP, NDP, NNP measured at market price, factor cost, and constant/current prices. National income estimation faces problems due to non-monetized sectors, illegal activities, and lack of data in developing countries like India. Its growth rate has increased from 4.4% initially to over 6% in recent decades.
National Income
The document discusses different methods for measuring national income, including gross domestic product (GDP). GDP can be calculated through the expenditure method by adding consumption, investment, government spending, and net exports. It can also be calculated through the income method by adding various incomes like wages, profits, and rent. GDP measures the value of final goods and services produced within a country. Gross national product (GNP) also includes income generated from domestic assets owned abroad. Real GDP adjusts for inflation to measure the actual volume of economic output and growth. National income statistics help analyze economic performance and living standards over time.
National Income Accounting
National income accounting involves calculating the total value of all final goods and services produced in a country in a year. It can be measured using the expenditure approach, income approach, or product approach. There are several challenges to accurate national income calculation including non-monetized sectors, illiteracy, lack of expertise, less sophisticated tools, double counting, false reporting, and multi-occupations. National income data is used to measure economic growth, real income, per capita income, and growth rates.
National income and related aggregates
This document defines key concepts in macroeconomics such as GDP, GNP, consumption and capital goods. It outlines the circular flow of income between households and firms and different methods to calculate national income including the product, expenditure and income methods. It also defines related concepts like private income, personal income, and real vs nominal GDP.
4 national income
The document discusses various concepts related to national income such as GDP, NDP, NNP, per capita income. It provides estimates of these figures for India from 1999-2000 to 2004-2005 at both current and constant prices. It also explains key terms like domestic territory, normal residents, stock and flow variables, closed and open economies, and methods of measuring national income such as the product, income and expenditure methods.
National income
National income is the total market value of all final goods and services produced in an economy in a given period of time. It can be measured using various approaches such as the output, income, and expenditure approaches. The document discusses the key concepts of national income including GDP, GNP, NNP, personal income, and per capita income. It also covers the methods used to estimate national income and limitations in the measurement process.
National income(Engineering Economics and Management-EEM)
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National income
The document discusses key concepts related to national income accounting including:
1) It defines the circular flow of income and how goods and services flow between producers and consumers.
2) It explains the different types of goods - final, capital, consumer, and intermediate - and how they relate to production.
3) It covers investment concepts like gross and net investment and how depreciation factors into these calculations.
4) It outlines the main sectors - households, businesses, government - and their roles in the circular flow of income and national income.
NATIONAL INCOME PPT
National income measures the total value of goods and services produced in an economy over a period of time. It is important for economists to measure national income to analyze economic growth, living standards, and income inequality. There are several concepts for calculating national income, including gross domestic product (GDP), gross national product (GNP), personal income, and per capita income. National income can be measured using the product, income, and expenditure methods, each with their own steps and considerations to account for issues like double counting. Calculating national income precisely poses challenges but the statistics are useful for economic planning, analysis, and international comparisons.
National Income Concepts
National income or national product is defined as the total market value of all final goods and services produced in an economy over a period of time. There are three main concepts used to measure national income - gross national product, net national product, and national income. National income can be estimated using the product method, income method, and expenditure method. However, there are several difficulties in accurately estimating a country's national income, particularly in less developed countries, such as accounting for non-monetary transactions, production not entering the market, and lack of record keeping.
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2. national income
National income is the total value of all final goods and services produced in a country in a year. It can be measured using three methods - the product or value added method, income method, and expenditure method. The product method sums the value added at each stage of production. The income method adds up incomes from factors of production. The expenditure method equals total consumption and investment expenditures. National income is important because it indicates a country's overall economic activity and standard of living.
National Income
National income is measured using three main methods: the production method, income method, and expenditure method. It is the total value of all final goods and services produced in an economy in a given period. National income data is important for measuring economic growth, distribution of wealth, and government budgeting and planning. However, there are difficulties in measuring national income such as the large non-monetized sector in many developing countries, unwillingness of people to reveal income data, problems with data collection, calculating depreciation, and avoiding double counting.
national income ,GNP, GDP, NOMINAL AND REAL INTEREST RATES& PPP'S
National income refers to the total money value of all final goods and services produced within a country in a given year. It is used to measure the overall economic activity and standard of living in a country. GDP is a key measure of national income and is defined as the total market value of all final goods and services produced within a country in a given period of time. GDP can be calculated using the expenditure approach, income approach, or output approach and includes consumption, investment, government spending, and net exports. While GDP is a useful measure, it does not account for all factors that affect economic well-being such as leisure, environmental quality, and non-market activities.
Measurement of National Income
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This document discusses key concepts in microeconomics and national income accounting:
- Microeconomics is the study of how individuals, households, firms, and governments make economic decisions and how their interactions in markets determine prices and quantities of goods and services, allocation of resources, and distribution of goods and income.
- National income accounting measures the total value of all final goods and services produced in a nation in a given period of time. Key concepts include GDP, GNP, NDP, NNP, GDP/GNP at market price and factor cost.
- Personal income, disposable income, private income are further breakdowns of national income accounting that measure income available to individuals/households after accounting for various
GDP, GNP, NNP, NDP, REAL GDP, NOMINAL GDP, GDP DEFLATOR
THIS SLIDES WILL WILL HELP YOU IN WHAT IS GDP WHICH THINGS NOT INCLUDE IN GDP FORMULA OF GDP AND ALSO DEFINE ITS EACH FACTOR AND WHAT IS GNP EXAMPLES OF GNP DIFFERENCE BETWEEN NDP AND NNP AND ALSO DIFFERENCE BETWEEN REAL GDP AND NOMINAL GDP AND HOW TO CALCULATE GDP DEFLATOR EVERY TOPIC IS DEFINE IN THIS SLIDES VERY CLEAR AND WITH EXAMPLES.
Gross domestic product
Gross Domestic Product is the market value of all final goods and services produced domestically in a country in a year
Concept and definition of national income
This document defines and compares different methods of calculating national income and GDP. It discusses calculating GDP at market prices versus factor cost, and how GDP is the sum of final goods and services produced domestically but excludes earnings of citizens working abroad. It also defines related terms like GNP, NNP, real versus nominal national income, per capita income, personal disposable income, and compares the product, income, and expenditure methods of calculating national income.
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National income
The document discusses how a nation determines its national income and whether the results are always accurate. It describes three common methods used to calculate national income - the product or output method, income method, and expenditure method. It then provides details on Nepal's economy, the main sources and composition of its national income, and challenges in obtaining accurate measurements due to issues like a lack of records, unstable politics, and income from illegal activities.
concepts of national income
This document defines and explains key concepts related to measuring a nation's economic activity, including:
- Gross Domestic Product (GDP) is the total market value of goods and services produced within a country in a year. GDP is calculated as consumption + government spending + investments + exports - imports.
- Gross National Product (GNP) includes the income earned abroad by a country's citizens, but excludes income earned within the country by foreigners.
- Net National Product (NNP) is GNP minus depreciation on capital. NNP is also called national income at market price.
- There are three main methods to measure national income: output/production, income, and expenditure. Each
National income
National income is defined as the total value of goods and services produced annually in a country. It includes all income received by households, businesses, and the government in the form of wages, rents, interest and profits. Gross domestic product and gross national product are key concepts used to measure national income. There are several methods used to calculate national income, including the product method, income method, expenditure method, and value added method. National income data is important for economic planning, policymaking, research, and analyzing factors like per capita income and income distribution.
Concept and method national income in india 5
National income is defined as the total money value of all final goods and services produced in an economy during a year. It is measured using product, income, and expenditure methods. The key concepts are GDP, GNP, NDP, NNP measured at market price, factor cost, and constant/current prices. National income estimation faces problems due to non-monetized sectors, illegal activities, and lack of data in developing countries like India. Its growth rate has increased from 4.4% initially to over 6% in recent decades.
National Income
The document discusses different methods for measuring national income, including gross domestic product (GDP). GDP can be calculated through the expenditure method by adding consumption, investment, government spending, and net exports. It can also be calculated through the income method by adding various incomes like wages, profits, and rent. GDP measures the value of final goods and services produced within a country. Gross national product (GNP) also includes income generated from domestic assets owned abroad. Real GDP adjusts for inflation to measure the actual volume of economic output and growth. National income statistics help analyze economic performance and living standards over time.
National Income Accounting
National income accounting involves calculating the total value of all final goods and services produced in a country in a year. It can be measured using the expenditure approach, income approach, or product approach. There are several challenges to accurate national income calculation including non-monetized sectors, illiteracy, lack of expertise, less sophisticated tools, double counting, false reporting, and multi-occupations. National income data is used to measure economic growth, real income, per capita income, and growth rates.
National income and related aggregates
This document defines key concepts in macroeconomics such as GDP, GNP, consumption and capital goods. It outlines the circular flow of income between households and firms and different methods to calculate national income including the product, expenditure and income methods. It also defines related concepts like private income, personal income, and real vs nominal GDP.
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The document discusses various concepts related to national income such as GDP, NDP, NNP, per capita income. It provides estimates of these figures for India from 1999-2000 to 2004-2005 at both current and constant prices. It also explains key terms like domestic territory, normal residents, stock and flow variables, closed and open economies, and methods of measuring national income such as the product, income and expenditure methods.
National income
National income is the total market value of all final goods and services produced in an economy in a given period of time. It can be measured using various approaches such as the output, income, and expenditure approaches. The document discusses the key concepts of national income including GDP, GNP, NNP, personal income, and per capita income. It also covers the methods used to estimate national income and limitations in the measurement process.
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This Powerpoint Presentation is about the Economy of India and its all termns covered by National Income
National income
The document discusses key concepts related to national income accounting including:
1) It defines the circular flow of income and how goods and services flow between producers and consumers.
2) It explains the different types of goods - final, capital, consumer, and intermediate - and how they relate to production.
3) It covers investment concepts like gross and net investment and how depreciation factors into these calculations.
4) It outlines the main sectors - households, businesses, government - and their roles in the circular flow of income and national income.
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NATIONAL INCOME PPT
National income measures the total value of goods and services produced in an economy over a period of time. It is important for economists to measure national income to analyze economic growth, living standards, and income inequality. There are several concepts for calculating national income, including gross domestic product (GDP), gross national product (GNP), personal income, and per capita income. National income can be measured using the product, income, and expenditure methods, each with their own steps and considerations to account for issues like double counting. Calculating national income precisely poses challenges but the statistics are useful for economic planning, analysis, and international comparisons.
National Income Concepts
National income or national product is defined as the total market value of all final goods and services produced in an economy over a period of time. There are three main concepts used to measure national income - gross national product, net national product, and national income. National income can be estimated using the product method, income method, and expenditure method. However, there are several difficulties in accurately estimating a country's national income, particularly in less developed countries, such as accounting for non-monetary transactions, production not entering the market, and lack of record keeping.
NATIONAL INCOME====by sumit mukherjee
National income is defined as the value of all final goods and services produced by the normal residents of a country in a year. It is measured to understand the size and performance of a country's economy, trace economic growth trends, know the structure of the national income, and help formulate development plans and policies. National income is calculated using the production, income, and expenditure methods and aggregates at current and constant prices. It is important but does not fully reflect human development or income distribution.
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Gross national product (GNP) is a measure of a nation's total economic output. It can be calculated using the expenditure approach, which adds up all consumption, investment, government spending, and net exports. Alternatively, GNP can be calculated using the income approach, which adds up all labor compensation, corporate profits, proprietor's income, and indirect business taxes. The national accounts of a country's economy track GNP and related indicators like gross domestic product using both expenditure and income methods.
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The document discusses several definitions of national income proposed by economists over time. Marshall defined it as the net annual output produced by a country through labor and capital acting on natural resources. Pigou defined it as the objective income measured in money. Fisher based his definition on consumption rather than production. Overall, national income is now generally defined as the total value of all final goods and services produced in a country in a year.
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National income
The document discusses key concepts related to national income, including:
1) The circular flow of income model which shows how money flows between businesses and individuals in an economy.
2) Key terms like gross domestic product (GDP), gross national product (GNP), net national product (NNP), personal disposable income (PDI), and personal income (PI) that are used to measure national income.
3) Methods for calculating GDP including the expenditure approach, income approach, and value/product approach.
National income
The document discusses different methods of measuring national income, including the income method, value added method, and expenditure method. It provides details on calculating national income using each method and compares the three approaches. Some key challenges in accurately measuring national income, such as problems of double counting and non-monetary transactions, are also outlined.
National income
The document defines several concepts related to national income measurement. It explains that national income is the total money value of all final goods and services produced in a country in one year. It then discusses several key concepts used to measure national income, including: gross domestic product (GDP), gross national product (GNP), net domestic product (NDP), net national product (NNP), personal income, and disposable income. Formulas are provided for calculating several of these concepts.
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National income
National income is defined as the total value of all final goods and services produced within a nation in a given year. It can be measured using three methods: the product method, which sums the value added by different sectors of the economy; the income method, which sums incomes in the form of wages, profits, rent, interest, and mixed income; and the expenditure method, which sums expenditures on consumption, investment, government spending, and net exports. An example shows calculating national income using the income and expenditure methods based on data provided on various economic components. Both methods produced the same result of 2150 crores.
Measurement of national income
National income is the total value of all goods and services produced in a country in a year. It can be measured using various methods such as the production, income, and expenditure methods. The production method sums the value of output from all sectors. The income method sums factor incomes like wages, interest, rent, and profits. The expenditure method sums expenditures on consumption, investment, government spending, and exports/imports. National income statistics are important for measuring economic growth, standards of living, and making country comparisons.
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National income is a measure of the total value of goods and services produced in an economy over a period of time, usually one year. It can be measured as the total income earned from production or the total spending on production. There are several definitions of national income but they generally refer to it as the total output or income of a nation. National income is commonly measured using Gross Domestic Product (GDP), Gross National Product (GNP), Net Domestic Product (NDP), and Per Capita Income (PCI). It is calculated using the Product Method, Income Method, and Expenditure Method by considering factors like consumption, investment, government spending, and trade flows.
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National income and its calculation
- 2. OUTLINE Definition of National Income Calculation of National income Expenditure approach Income approach Production approach National Income of UAE (united Arab Emirates) Major components of national income of UAE Bilateral trade relation of UAE
- 3. NATIONAL INCOME Definition: National income is the total value of a country’s final output of all new goods and services produced in one year. Understanding how national income is created is the starting point of macroeconomics
- 4. CALCULATION OF NATION INCOME Any transaction of product has three phases; 1. Expenditure for purchaser 2. Income to seller 3. The value of product Ex: I buy a pen on 5 afs so 5 afs is expenditure for me, income for seller, and the value of pen. So we have three methods for accounting national income
- 5. CALCULATION OF NATIONAL INCOME 1. Expenditure method In this method all spending of households and firms in an economy on new goods and services are summed up and arrived at the point of national income Consumption Investment Government expenditures Net exports (exports – imports)
- 6. CALCULATING NATIONAL INCOME Income method In this method all the income of four factor of production are calculated. In the shape of Land Labor Capital organization Rent Wage Interest Profit
- 7. CALCULATION OF NATIONAL INCOME 3. Production approach In this method all new production carried out by organizations and individuals in an economy are summed and the monetary value of all is called to be national income of that country at that year. In order to measure we should divide whole economy into sectors
- 8. NATIONAL INCOME OF UAE Let’s see how National Income of UAE (United Arab Emirates) is calculated
- 9. NATIONAL INCOME OF UAE UAE calculate their National Income through three methods in all these three methods the value is not the same, because of Change in data source Change in timing Change in estimate techniques
- 10. NATIONAL INCOME OF UAE UAE is the world sixth large oil and gas reserve country and one of major player of energy in the world UAE is the second large economy after Saudi Arabia in Middle East
- 11. NATIONAL INCOME OF UAE Gross national income: $ 360,245,074,960 (2011) Gross national expenditure: $270,333,567,967 (2011) National income – national expenditure = $ 89,911,506,993 (Profit)
- 12. NATIONAL INCOME OF UAE Exports = $ 265,300,000,000 Imports = $ 158,600,000,000 Net exports = $ 106,700,000,000
- 13. NATIONAL INCOME OF UAE Major components of National income of UAE The great player in National Income of UAE is crude oil and gas and it is one third of all GDP Foreign investment Trade include transport, business and port service (Jebel Ali port is host of large number of navy ships of US and the big port of US in all over the world) Construction specially prestige hotels and so on
- 14. NATIONAL INCOME OF UAE Bilateral Trade Relation UAE largest bilateral trade country is Australia, in 2009 mutual trade between these two countries was $ 4.25 billion from this UAE export $2.11 billion to Australia and import was $2.14 billion. Exports: oil & gas etc Imports: PMV, processed zinc, iron, gold, industrial machinery, office machinery, for Australia UAE is a very good educational market too. www.nationmaster.co
- 15. NATIONAL INCOME OF UAE 300 large Australian companies are engage in the economy of UAE The free trade agreement between UAE and Australia in 2005 helped both countries to increase their National Income