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VARIANTS

OF
NATIONAL INCOME

GROSS DOMESTIC
PRODUCT(mp)
GDP is the market value of final goods
& services produced during a year
within the domestic territory of a
country.
DOMESTIC TERRITORY
It is a concept wider than the political
boundaries of a country.

GDP(mp)
=
GNP
-
Net
income
from
abroad
GROSS NATIONAL PRODUCT
(mp)
GNP at market price is the market
value of final goods & services
produced within the domestic territory
of a country during an accounting
period along with net factor income
earned from abroad & consumption of
fixed capital.

Net factor income from abroad

Difference between factor income earned by
our resident from rest of the world & factor
income earned by non-resident with in our
country.
GNP(mp) = GDP(mp) +
Net
Factor
Income
From
abroad
Gross domestic product (fc)

It is the sum total of factor
incomes(rent+interest+profit+wages)
generated within the domestic territory
of a country, along with consumption
of fixed capital ,during a year.
It includes:

Compensation of
employees
Operating surplus
Mixed income
GDP
(fc)
=
GDP
(mp)
-
Indirect
taxes
+ subsidies
GROSS NATIONAL
PRODUCT(fc)
GNP(fc) is the sum total of factor
incomes earned by normal residents
of a country along with consumption of
fixed capital, during a year.

GNP
(fc)
=
GNP
(mp)
-
Indirect
Taxes
+
Subsidies
NET DOMESTIC
PRODUCT(mp)
NDP(mp) is the market value of final
goods & services produced within the
domestic territory of a country,
exclusively of depreciation.
NDP
(mp)
=
GDP
(mp)
-
Deprecition
NET DOMESTIC
PRODUCT(fc)
NDP(fc) is the sum total of factor income
generated within the domestic territory of a
country during a period of one year.



subsidies
+
Indirect
taxes
-
NDP
(mp)
=
NDP
(fc)
NET NATIONAL PRODUCT(mp)
NNP(mp) is the net value of final good
& services produced by the normal
residents in the domestic territory &
abroad in an accounting year.


NET NATIONAL PRODUCT (fc)
NNP(fc) is the sum total of factor
incomes generating within the
domestic territory of a country, along
with net factor income from abroad
during a year.
NNP
(fc)
=
NDP
(fc)
+
Net Factor
Income
From
abroad
NATIONAL DISPOSABLE
INCOME
It refers to the net income at the
market price available to a country for
disposal.
Income from all the sources available
to the residents of a country for saving
during a year.

National disposable income =
national income +net indirect
taxes+net current transfers from
the rest of the world

private income
Total of factor income from all the
sources & current transfers from the
government & rest of world accruing
private sector.

Private income=factor income
from NDP accruing to private
sector+net factor income from
abroad+int. on national Debt
+current transfer from
govt.+current trnsfer from rest
of world
PERSONAL INCOME
The income actually received by
individual & households from all
resources in the form of factor income
& current transfers.

Personal
income
=
Private
Income
-
Undistributed
profits
PERSONAL DISPOSABLE
INCOME
The income remaining with the
individual & households after the
deduction of all taxes levled against
their income & property by the
government.

Personal disposable income= personal
income-direct personal tax
miscellaneous receipts of govt.
administrative department.
FACTOR INCOME FROM NET
DOMESTIC PRODUCT
ACCRUING TO PRIVATE
SECTOR

It is that part of net domestic product
at factor cost which is accrued to
private sector.
It excludes:

Income from property & entrepreneurship
accruing to govt. departmental enterprises.
Saving of non-departmental enterprises.
Solution