National Income in of India in 2010-11
MACRO-ECONOMICS ASSIGNMENT
TOPIC: NATIONAL INCOME ACCOUNTING IN INDIA WITH REFERENCE TO THE YEAR 2010-2011
What is NATIONAL INCOME?
The concept of National Income is worth elaborating as it is the index of economic development. Innumerable varieties of goods are produced in an economy in a year. These goods or output are expressed in monetary terms. The aggregate of monetary values of all verities of goods produced in a country during a given period, usually a year is called National product. For the production of innumerable varieties of output, four factors of production have their respective contribution for which they are paid in terms of * rent, * wage, * interest and * Profit.
The sums of their enumerations constitute the national income. This total income is spent on buying the output produced (National Product). Thus the total income will be the total expenditure made on the national product.
Therefore National Product = National Income = National expenditure.
The study of National Income is important because of the following reasons: * To see the economic development of the country. * To assess the developmental objectives. * To know the contribution of the various sectors to National Income.
TRADITIONAL DEFINITIONS OF NATIONAL INCOME:-
There are three main definitions of national income by Marshall, Pigou and Fisher.
1. Marshall 's definition:-
Marshall defines national income as the labour and capital of country acting on its natural resources produce annually certain net aggregate of commodities, material and. immaterial including services of all kinds. This is the true net annual income or revenue of the country or national dividend.
According to Marshall all types of goods and services whether they come to market or not are included in the national income to him national income means net national income. The net total output is added up from different productive activities in order to arrive at
TOPIC: NATIONAL INCOME ACCOUNTING IN INDIA WITH REFERENCE TO THE YEAR 2010-2011
What is NATIONAL INCOME?
The concept of National Income is worth elaborating as it is the index of economic development. Innumerable varieties of goods are produced in an economy in a year. These goods or output are expressed in monetary terms. The aggregate of monetary values of all verities of goods produced in a country during a given period, usually a year is called National product. For the production of innumerable varieties of output, four factors of production have their respective contribution for which they are paid in terms of * rent, * wage, * interest and * Profit.
The sums of their enumerations constitute the national income. This total income is spent on buying the output produced (National Product). Thus the total income will be the total expenditure made on the national product.
Therefore National Product = National Income = National expenditure.
The study of National Income is important because of the following reasons: * To see the economic development of the country. * To assess the developmental objectives. * To know the contribution of the various sectors to National Income.
TRADITIONAL DEFINITIONS OF NATIONAL INCOME:-
There are three main definitions of national income by Marshall, Pigou and Fisher.
1. Marshall 's definition:-
Marshall defines national income as the labour and capital of country acting on its natural resources produce annually certain net aggregate of commodities, material and. immaterial including services of all kinds. This is the true net annual income or revenue of the country or national dividend.
According to Marshall all types of goods and services whether they come to market or not are included in the national income to him national income means net national income. The net total output is added up from different productive activities in order to arrive at