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    National Income - Definitions - Lovish Kakkar

    Uploaded by

    Ajuni Shah
    The document defines key terms related to measuring national income: - Gross Domestic Product at market price refers to the total value of final goods and services produced domestically in a year including indirect taxes. - Gross Domestic Product at factor cost excludes indirect taxes. - Net Domestic Product at market price includes net indirect taxes. - Net National Product at market price includes the total value produced domestically and abroad by residents in a year.

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    National Income - Definitions - Lovish Kakkar

    Uploaded by

    Ajuni Shah
    29 views2 pages
    The document defines key terms related to measuring national income: - Gross Domestic Product at market price refers to the total value of final goods and services produced domestically in a year including indirect taxes. - Gross Domestic Product at factor cost excludes indirect taxes. - Net Domestic Product at market price includes net indirect taxes. - Net National Product at market price includes the total value produced domestically and abroad by residents in a year.

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    NATIONAL INCOME_DEFINITIONS_LOVISH KAKKAR

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    The document defines key terms related to measuring national income: - Gross Domestic Product at market price refers to the total value of final goods and services produced domestically in a year including indirect taxes. - Gross Domestic Product at factor cost excludes indirect taxes. - Net Domestic Product at market price includes net indirect taxes. - Net National Product at market price includes the total value produced domestically and abroad by residents in a year.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    29 views2 pages

    National Income - Definitions - Lovish Kakkar

    Uploaded by

    Ajuni Shah
    The document defines key terms related to measuring national income: - Gross Domestic Product at market price refers to the total value of final goods and services produced domestically in a year including indirect taxes. - Gross Domestic Product at factor cost excludes indirect taxes. - Net Domestic Product at market price includes net indirect taxes. - Net National Product at market price includes the total value produced domestically and abroad by residents in a year.

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    © All Rights Reserved
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    LOVISH KAKKAR @9999911378

    NATIONAL INCOME AND RELATED AGGREGATES

    Gross Domestic Product at market price


    It refers to the gross market value of all final goods and services produced within the
    domestic Territory of a country during a period of one year.

    ● Gross signifies that no provision has been made for depreciation.

    ● Domestic signifies that it includes goods and services produced by all the units located
    within the domestic territory.

    R
    ● Market price signifies that it includes the amount of indirect taxes paid and excludes the

    A
    amount of subsidy received i.e. it shows net indirect taxes have been included.

    K
    ● Product in GDP MP signifies that only final goods and services have to be included.

    Gross Domestic Product at factor cost

    K
    It refers to the gross money value of all final goods and services produced within the domestic
    territory of a country during a period of one year.
    A
    Net Domestic Product at market price
    It refers to the net market value of all final goods and services produced within the domestic
    K
    territory of a country during a period of one year.

    Net National Product at market price


    H

    It refers to the net market value of all final goods and services produced by normal residents of
    a country during a period of one year.
    IS

    Domestic Income ( NDPfc) National Income ( NNPfc)


    V

    It is a territorial concept as it includes the It is a national concept as it includes the


    value of final goods and services produced value of final goods and services produced in
    LO

    within the domestic territory of a country. the entire world.

    It considers all producers within the domestic It considers all producers who are normal
    Territory of a country. residents of the country.

    It does not Include net factor income from It includes net factor income from abroad.
    abroad.
    LOVISH KAKKAR @9999911378

    Gross domestic product at market price National Income (NNPfc)


    (GDPmp)

    It is a territorial concept as it includes the It is a national concept as it includes the value


    value of final goods and services produced of final goods and services produced in the
    within the domestic territory of a country. entire world.

    It considers all producers within the domestic It considers all producers who are normal
    Territory of a country. residents of the country.

    R
    It is at market price i.e. it includes Net It is at factor cost i.e. it excludes Net indirect
    indirect taxes. taxes.

    A
    It is inclusive of depreciation. It does not included depreciation.

    K
    ➔ Gross - depreciation = Net.
    ➔ Net + Depreciation = Gross.
    ➔ Domestic + NFIFA = National.

    K
    ➔ National - NFIFA = Domestic.
    ➔ Domestic - NFITA = National.** A
    ➔ Factor cost + NIT = Market price.
    ➔ Market price - NIT = Factor cost.
    K
    Net factor Income from abroad = Factor income from abroad - factor income to abroad.

    NIT = Indirect taxes - subsidies.


    H

    Domestic Income can be more than National Income when Factor income to abroad is more
    than factor income from abroad.
    IS
    V
    LO

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