National Income
Income – a word
which have a large concept and have a wide area. It’s related with all country
and all the people of a particular country which engages them-self in any
financial activity. In national income, we include all financial activity which
is done by all the people of the country. In it we include, all the goods and
services of an economic which is produce in a limited time frame and have a
price.
 |
| National Income or public income or total income |
According to
Marshal – National Income is a total income or total production which is
produce by the entire production factor like capital or employee or natural
resources etc in a limited time frame. Different people have different view to
calculate national income. Someone define it in the basic of - income of all
people in a country, other one is total expenditure or consumption etc.
We have three
methods to calculate the National Income –
Income Method
– in this method, we include the income of all production factors because they
receive an income against their service, so total income is equal to the income
of all production factors. GDP is equal to labor income or salary + interest +
profit + rent etc.
Expenditure
Method – in this method, we include total expenditure for all the goods and
services in a limited time frame in an economic. We also include durable or
non-durable thing in it.
Production
Method – in this method, we include all the production in our economic by
different industry. In it, we include total production of all goods and
services. We also called it a value added method or factor cost of industry.
