National income represents the total monetary value of all goods and services produced in a country. It can be measured through various methods such as income, product/output, and expenditure methods, and is important for government policy formulation and economic growth. However, measuring it faces challenges like conceptual limitations, double counting, and issues related to non-monetized sectors.

1. National Income

2. National Income:
Refers to the sum of total of Monetary value of all goods
and services produce in a country.
Concepts:
GDP:- sum of market price of all goods and services in 1
financial year
GNP:- abroad income + GDP
GDP at market Price:- total output x domestic income
GNP at market price:- total output x (Import + export)
GDP at factor Cost:- GDP (at market price) – Tax
GNP at factor Cost:- GNP (at market price ) – Tax

3. Methods for measuring National Income:
1. Income Method:- Earnings from all the factors of productions
2. Product/Output Method:- Final value good and value added
income is added
3. Expenditure Method

4. Importance:-
1. Helps government to form policies
2. Gives idea about output
3. Helps in economic growth
4. Increases National Income
5. Helps in Development

5. Problems in measuring.
1. Conceptual
Only theories
No actual national income
Only few factors are considered
Only goods and services are included
2. Statistical
Double counting
Non monetise sector
Problem of transfer payment
Illiteracy
Depreciations
Final product pricing

6. Thank you