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NATIONAL INCOME
Introduction
• According to J. M. Keynes
National income is the money value of all final
goods and services produced in a country during a
year
continued……………….
• Income method
Incomes accruing to the basic factors of production used in producing the national
product
GNI = Rent +wage + interest + profit +income from abroad
Labor & capital – factor of production
3 types of income-
Labor income – wages , free health and education, pension ,employee’s welfare fund.
Capital income – dividends, interest on bonds, royalties etc.
Mixed income –
1) farming enterprises 2) sole proprietorship 3) professional
Help us to know the contributions made by different landlords, laborers, capitalists
& organizers to national income
Methods………..
Value of all the products finally disposed off are computed and added up
Private consumer goods +public goods and services +private investment
goods +net investment abroad
Which method should choose?