Managerial Economics National Income
Assaignment topics:
Nature , conceps , measurement of nation income
Classical and Keynes approaches
nATIONAL INCOM E:
----The t otal sum of goods and services produced by t he people of a count ry wit h t he help of capit als and national resources called Nat ional Income (Prof. Alfred Marshall)
We can define Nat ional Income as t he collective achievement of a nat ion. In t his way, t he Nat ional Income is t he aggregat e of t he individual incomes. (Prof. Gardner Ackley)
Nat ional Income is t he basic concept of economic, which refers t o t he market value of t he goods and services produced during a part icular year. (Prof. Richard Lipsy)
CONCEPTS OF NATIONAL
INCOme
----1.GROSS DOMESTIC PRODUct
Total value of output (goods and services) produced by the factors of production located within the country’s boundary in a year
GDP = GNP – Net income earned from abroad
2.GROSS NATIONAL PRODUCT
Defined as current value of all goods and services produced by the economy during a given period
•
GNP = value of all (final) goods and services produced in a country in one year + income earned by its citizens abroad - income earned by foreigners in the country
3.NET NATIONAL PRODUCT
Net National Product (NNP) is arrived at by making some adjustment, with regard to depreciation, in GNP
GNP – Depreciation = NNP
4.PERSONAL INCOME
Current income received by the individuals or households from all sources including transfer income from government and business during the year
Personal income = net national income + transfer payments – undivided corporate profit – corporate income tax – social security contribution
5.DISPOSABLE PERSONAL INCOme
Actual income which can be spent on consumption by individuals and families
Disposable income = consumption expenditure + Savings
CORPORATE INCOMe Incomes and profits of companies or public corporation
DOMESTIC INCOME
Income generated by the factors of production within the country from its own resources
PER CAPITA INCOME
Nature , conceps , measurement of nation income
Classical and Keynes approaches
nATIONAL INCOM E:
----The t otal sum of goods and services produced by t he people of a count ry wit h t he help of capit als and national resources called Nat ional Income (Prof. Alfred Marshall)
We can define Nat ional Income as t he collective achievement of a nat ion. In t his way, t he Nat ional Income is t he aggregat e of t he individual incomes. (Prof. Gardner Ackley)
Nat ional Income is t he basic concept of economic, which refers t o t he market value of t he goods and services produced during a part icular year. (Prof. Richard Lipsy)
CONCEPTS OF NATIONAL
INCOme
----1.GROSS DOMESTIC PRODUct
Total value of output (goods and services) produced by the factors of production located within the country’s boundary in a year
GDP = GNP – Net income earned from abroad
2.GROSS NATIONAL PRODUCT
Defined as current value of all goods and services produced by the economy during a given period
•
GNP = value of all (final) goods and services produced in a country in one year + income earned by its citizens abroad - income earned by foreigners in the country
3.NET NATIONAL PRODUCT
Net National Product (NNP) is arrived at by making some adjustment, with regard to depreciation, in GNP
GNP – Depreciation = NNP
4.PERSONAL INCOME
Current income received by the individuals or households from all sources including transfer income from government and business during the year
Personal income = net national income + transfer payments – undivided corporate profit – corporate income tax – social security contribution
5.DISPOSABLE PERSONAL INCOme
Actual income which can be spent on consumption by individuals and families
Disposable income = consumption expenditure + Savings
CORPORATE INCOMe Incomes and profits of companies or public corporation
DOMESTIC INCOME
Income generated by the factors of production within the country from its own resources
PER CAPITA INCOME