Measurement of national income is of great importance, because it is a dependable index of prosperity and welfare of the country. However, measurement involves certain difficulties which have to be overcome so as to make national income estimates as accurate…

B] Value added method of measuring national income. Value added method is also known as Production method. In order to avoid double counting, value -added approach is used. This method is used to measure national income at the different phases…

Methods of measuring national income   Introduction   Measures of national income and output are used in economics to estimate the value of goods and services produced in the economy. They use a system of national accounts or national accounting developed…

Distribution of national income     1] Personal income distribution of national income Personal income distribution of national income is the distribution of national income among the people of the country. Therefore national income refers to the total earnings of…

1] National Product National product refers to the flow of goods and services in the economy in a given period of time usually a year. It is the value (volume) of goods and services, both tangible and intangible, produced in…

Concepts 1] Gross Domestic Product a] Gross Domestic Product [GDP (MP)] Gross – total/aggregate Domestic – within the political/geographical/territorial boundaries of a nation, regardless of who is doing the producing or who owns the productive capital that produces it. Product – the…

1] National income is a macro-economic concept National income is an outstanding example of macroeconomic analysis. It deals with “aggregate” or the “economy as a whole”. National income presents the picture of the overall performance of the economy as a…

1] Dr Alfred Marshall “The labour and capital of a country acting on its natural resources produce annually a certain net aggregate of commodities, material and immaterial including services of all kinds. . . .This is the true net annual…

Precursors The history of the national accounts is relatively recent but falls under the long statistical tradition which started with the population censuses. The political authorities sought to evaluate their principal wealth, the source of their power, i.e. the people…