File Name: national income concepts and measurements .zip
Not a MyNAP member yet? Register for a free account to start saving and receiving special member only perks. Natural and social scientists concerned about natural resources and the environment have endeavored to take the measure of nature. Measures used for this purpose range from those used to monitor the state of major environmental indicators, such as air and water quality, to analytical measures of major environmental aggregates. For the most part, however, measures of the economic contribution of natural resources and the environment have lagged behind physical measures.
N ational income accounts NIAs are fundamental aggregate statistics in macroeconomic analysis. The ground-breaking development of national income and systems of NIAs was one of the most far-reaching innovations in applied economics in the early twentieth century. NIAs provide a quantitative basis for choosing and assessing economic policies as well as making possible quantitative macroeconomic modeling and analysis. Combined with population data, national income accounts can provide a measure of well-being through per capita income and its growth over time. Combined with financial and monetary data, NIAs provide a guide to inflation policy. In emerging and transition economies , implementing a dependable and accurate system of NIAs is a crucial step in developing economic policy.
National income is an uncertain term which is used interchangeably with national dividend, national output and national expenditure. On this basis, national income has been defined in a number of ways. In common parlance, national income means the total value of goods and services produced annually in a country. It includes payments made to all resources in the form of wages, interest, rent and profits. The definitions of national income can be grouped into two classes: One, the traditional definitions advanced by Marshall, Pigou and Fisher; and two, modern definitions. This is the true net annual income or revenue of the country or national dividend. And to this, must be added income from abroad.
The total net value of all goods and services produced within a nation over a specified period of time, representing the sum of wages, profits, rents, interest, and pension payments to residents of the nation. For the purpose of measurement and analysis, national income can be viewed as an aggregate of various component flows. The most comprehensive measure of aggregate income which is widely known is Gross National Product at market prices. Gross emphasizes that no allowance for capital consumption has been made or that depreciation has yet to be deducted.
Different Concepts of National Income 3. Importance of National Income Analysis. The total income of the nation is called national income.
Structure This chapter onwards, we will deal with macroeconomic aspects of managerial economics. The major aspects of macroeconomics that are generally used in business analysis, especially in analyzing and understanding business environment of the country include i the level and trends in national income, ii factors determining national income, iii factors and forces leading to business cycles, iv the trend in general lend of price, especially inflation, v international economic aspects, and vi government policies, especially fiscal and monetary policies. In this chapter, we will discuss the meaning and methods of measuring national income and the methods of measuring national income in India.
Income, Depreciation, Indirect Tax, Implicit Price Deflator. QUADRANT-I. Module National Income: Concept and Measurement. 1. Learning Outcome. 2.
NATIONAL INCOME: CONCEPTS AND. MEASUREMENT. Presented by. Dr. Ashok B Kakde. Assistant Professor. Department of Economics,. ebezpieczni.org college.Peverell B. 20.03.2021 at 00:06
India, Concept & Measurement. 4. Basic Concepts in National income. • Gross domestic product. • Gross domestic product at constant price and at current price.