Business Economics
Part 2
By - Jasmeet Sir
, Topic : MEANING OF NATIONAL INCOME
National Income Accounting, pioneered by the Nobel prize-winning economists Simon
Kuznets and Richard Stone, is the system of macro-economic accounts from the stage
of production of goods and services to the stage of their final disposal.
National Income is defined as the net value of all economic goods and services
produced within the domestic territory of a country in an accounting year plus the net
factor income from abroad.
, Topic : USEFULNESS AND SIGNIFICANCE OF NATIONAL INCOME
ESTIMATES
• Framework for analyzing and evaluating the short-run performance of an
economy
• Pattern of demand for goods and services
• Economic welfare
• Quantitative basis for assessing and choosing economic policies
• Throw light on income distribution
• Assist in determining eligibility for loans etc.
• A guide to make policies for growth and inflation
• Forecasting about the future development trends of the economy
, Topic : DIFFERENT CONCEPTS OF NATIONAL INCOME
1. Gross vs Net
Gross Net
(-) Depreciation
2. Domestic Product vs National Product
Domestic National
+ Net Factor Income From Abroad
Or - Net Factor Income TO Abroad
Part 2
By - Jasmeet Sir
, Topic : MEANING OF NATIONAL INCOME
National Income Accounting, pioneered by the Nobel prize-winning economists Simon
Kuznets and Richard Stone, is the system of macro-economic accounts from the stage
of production of goods and services to the stage of their final disposal.
National Income is defined as the net value of all economic goods and services
produced within the domestic territory of a country in an accounting year plus the net
factor income from abroad.
, Topic : USEFULNESS AND SIGNIFICANCE OF NATIONAL INCOME
ESTIMATES
• Framework for analyzing and evaluating the short-run performance of an
economy
• Pattern of demand for goods and services
• Economic welfare
• Quantitative basis for assessing and choosing economic policies
• Throw light on income distribution
• Assist in determining eligibility for loans etc.
• A guide to make policies for growth and inflation
• Forecasting about the future development trends of the economy
, Topic : DIFFERENT CONCEPTS OF NATIONAL INCOME
1. Gross vs Net
Gross Net
(-) Depreciation
2. Domestic Product vs National Product
Domestic National
+ Net Factor Income From Abroad
Or - Net Factor Income TO Abroad
