п»їNational Income is defined as the sum total of all of the goods and services manufactured in a country, in a particular time period. Normally this period consists of one full year duration, like a year can be neither way too short nor very long a period. National product is usually used associated with National income.
Concepts of National Income
There are different concepts of Countrywide Income, particularly; GNP, GDP, NNP, Personal Income and Disposable Income. Gross Countrywide Product (GNP)
GNP at market price is usually sum total of all goods and services produced in a country during a year and net income coming from abroad. GNP is the amount of Major Domestic Merchandise at Market Price and Net Factor Cash flow from abroad. GDP in market price & Net Factor Income from Abroad sama dengan GNP by market price When calculating GNP, the final services and goods of the next are considered: (a) Consumer services and goods.
(b) Low private domestic income.
(c) Goods and services produced by Government.
(d) Net income coming from abroad.
Ways to GNP
There are three several approaches to GNP, namely cash flow approach, expenditure approach and product strategy. 1 . Income approach
In income way, we find the several categories of Income namely; (1) Wages and salaries (2) Rents (3) Interest (4) Dividends (5) Undistributed company profits (6) Mixed earnings (7) Direct taxes (8) Indirect fees (9) Downgrading (10) Net gain from overseas.
2 . Costs approach
In expenditure approach, we find the several categories of costs namely, (1) Private intake expenditure (2) Gross household private income (3) Net foreign salary (4) Govt expenditure about goods and services.
a few. Product strategy
In merchandise approach, we discover the following categories of output. (1) Final market value of goods and services
(2) Less expense of intermediate merchandise.
The following elements are to be regarded while establishing the GNP: 1 . Just those goods and services which can be tested by Money. 2 . Selling price...