MANNAM FOUNDAITON CENTRE FOR EDUCATION TECHNOLOGY,

PORUVAZHY P O EDAKKAD

Name : Devika.SSubject : Social ScienceCandidate Code : 16915373002

NATIONAL INCOME

National income is the total net value of goods and services produced within a nation over a specified period of time representing some of wages, profit, rents, interest and pension payments to residences of the nation.

National income is the amount earned from the production of goods and services in a country during a year. This is a received mainly from three sectors.Agricultural SectorIndustrial SectorService SectorAdding up the income from these sectros we get national income. When we calculate the money value of all goods and services produced in a country during a particulars year, we get the national income of the country for that year

Concepts of national income

•GNP (Gross National produced)Gross National produced is an important concept of national income. It is calculated on the basis of the final goods and services produced in a country.

GROSS DOMESTIC PRODUCT (GDP)

GDP of a country is the total money value of the final goods and services produced within the domestic territory during a financialyear.

NET NATIOANL PRODUCT

Net National Product = GNP – De Priciation charges

Percapita Income

When we divide the national income by population. We get per capital income.

How to calculate national income

There are three methods for estimatng national incomeProduct methodIncome MethodExpenditure Method

Concepts of national income

The economic condition of a country is calculated to increase production for economic prosperity. National income is the total value of a country’s final outpaid of all new goods and services produced in one year.