Definition Of National Income In Economics

National income refers to the money value of all the goods and services produced in a country during a financial year.

Definition of national income in economics. The national income of india is the sum total of income everyone earns in india. Economics economics the total of all incomes accruing over a specified period to residents of a country and consisting of wages salaries profits rent and interest. Gdp gnp are also parts of this national income. Further the savings rate and investment in the economy are the determinantal factors in the national income of india.

National income is an uncertain term which is used interchangeably with national dividend national output and national expenditure. On the other hand net national income. Income is expressed in two ways gross national income and net national income. Thus the concept national income has different meanings.

The national income is the total amount of income accruing to a country from economic activities in a years time. National income is the aggregate money value of all incomes earned by individuals and enterprises. In common parlance national income means the total value of goods and services produced annually in a country. This is because first a company has to pay corporate income tax t c to the government out of its earned income.

It includes payments made to all resources either in the form of wages interest rent and profits. National income denotes the sum of the value of goods and goods produced in an economy during a particular year. Difference between gdp and gnp the uses of national income statistics. Collins english dictionary complete and unabridged 12th edition 2014 harpercollins publishers 1991 1994 1998 2000 2003 2006 2007 2009 2011 2014.

National income may also be defined as the money measure of the net aggregates of all commodities and services accruing to the inhabitants of an economy during a year. National income measures the monetary value of the flow of output of goods and services produced in an economy over a period of time. Although national income is the sum total of all individuals personal income it is observed that received income is smaller than the earned income. On this basis national income has been defined in a number of ways.

In other words the final outcome of all the economic activities of the nation during a period of one year valued in terms of money is called as a national income. National income estimates help us to understand the economic conditions and position of the people of an economy. Gross national income refers to the sum of the money value of goods and services produced in an economy during a year.