UNIT 2 NATURE OF THE ECONOMY

ECONOMIC FACTORS NATIONAL AND PER CAPITA INCOME HUMAN RESOURCES

NATIONAL AND PER CAPITA INCOME

The aggregate flow of goods and services represents the total income earned by the factors of production employed during the year and is known as the national income. The rate of growth of the national income in an economy is an indication of the pace at which the economy has been growing. A high growth rate indicates that the economy is a developed one, and low rate signals that the economy is a developing one. However our growth rates have been less than the planned targets, primary reasons for low growth rate in the national income is the deficiency in investment, followed by high capital output ratio, low agricultural and industrial growth and population explosion.

HUMAN RESOURCES
Human resources constitute an important constituent of the total economic environment. In the first place people provide ready market for goods produced and services rendered by Business establishments. Secondly people together constitute one of the factors of production. It is not enough if a country has land and