What is National Income? How is it measured ?
National income = NDP at factor cost NFIA (net factor income from abroad) - Depriciation
Different measures used in economics to measure national income include Gross Domestic Product (GDP), Gross National Product (GNP), and Net National Product (NNP). These measures may be calculated by the output approach, income approach or the expenditure approach.GDP is the total market value of all final goods and services produced within a country in a year. Final goods or services are those whose purchasers are not acquiring them for further processing but for final use. GDP is considered as a better measure in short term.
GNP is the market value of all goods and services produced from domestically owned factors of production during a period .GNP is a monetary measure and helps in determining sources of income and its uses.
NNP is ca ...more