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8/6/2019 Mentoring Group 2
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MENTORING GROUP 2MENTORING GROUP 2MENTORING GROUP 2MENTORING GROUP 2GROUP LEADER NAMEGROUP LEADER NAME ::
Anushree YadavAnushree YadavASSISTANT LEADERASSISTANT LEADER ::
Ashish AgrahariAshish AgrahariOTHER MEMBERSOTHER MEMBERS ::
Arati ThakurArati ThakurArpita KasarArpita Kasar
Anushree RaikwarAnushree RaikwarAshutosh KushwahaAshutosh KushwahaArchana kushwahaArchana kushwaha
Alithia turnerAlithia turnerAnkita DobrialAnkita Dobrial
B.COM 2B.COM 2ndnd SEMESTERSEMESTERSECTION BSECTION B
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CCE 1
NATIONAL INCOME
(Meaning, components andproblems while calculatingnational income)
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NATIONAL INCOME The sum total of all goods and services produced in a year. It is the money value of the flow of goods and services
available in an economy.
NATIONAL INCOME COMMITTEE OF INDIA 1951
DEFINES NATIONAL INCOME AS FOLLOWS :
A national income estimates the measures the volume and
commodities of services turned out during a given periodcounted without duplication.
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1. GROSS DOMESTIC PRODUCT AT marketprice
Gross Domestic Product (GDP) is the market value of thefinal goods and services produced during a year within thedomestic territory of a country.
2. GROSS DOMESTIC PRODUCT AT factor cost
Gross Domestic Product at factor (GDPFC) is the sum totalof factor incomes (rent + interest + profit + wages)generated within the domestic territory of a country, along
with consumption of fixed capital.
GDPFC = NDPFC + DEPRECIATION
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3. GROSS NATIONAL PRODUCT AT MARKET
PRICEGross National Product at Market Price (GNPMP) is themarket value of the final goods and services produced bynormal residents of a country during an accounting year.
GNPMP = GDPMP + NET FACTOR INCOME FROM ABROAD
4. GROSS NATIONAL PRODUCT AT FACTOR COSTGross National Product at Factor Cost (GNPFC) is the sum offactor incomes earned by normal residents of a country,inclusive of depreciation during an accounting year.
GNPFC = NNPFC + DEPRECIATION
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5. NET DOMESTIC PRODUCT AT MARKETPRICE
Net Domestic Product at Market Price (NDPMP) is themarket value of final goods and services produced withinthe domestic territory of a country during a year, exclusiveof depreciation.
NDPFC = GDPMP DEPRECIATION
6. NET DOMESTIC PRODUCT AT FACTOR COST Net Domestic product at Factor Cost (NDPFC) is the sum
total of factor incomes (rent + profit + wages + interest)
generated within the domestic territory of a country duringa year.NDPFC = NDPMP NET INDIRECT TAXES
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7. NET NATIONAL PRODUCT AT MARKETPRICE
Net National Product at Market Price (NNPMP) is the marketvalue of the final goods and services produced by normalresidents of a country during an accounting year, exclusiveof depreciation.
NNPMP = GNPMP - DEPRECIATION
8. NET NATIONAL PRODUCT AT FACTOR COST
Net National Product at Factor Cost (NNPFC) is the sumtotal of factor incomes ( rent + interest + profit +wages )
earned by normal residents of a country during the periodof an accounting yearNNPFC + NDPFC + NET FACTOR INCOME FROM ABROAD
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9. NATIONAL DISPOSABLE INCOME
National Disposable Income is the income from allsources (earned income as well as transferpayments from abroad) available to residents of acountry for consumption expenditure or for saving
during a year.National Disposable Income = National Income
+ Net Indirect Taxes+ Net Current Transfers From
Rest Of The World
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10. FACTOR INCOME FROM NET DOMESTICPRODUCT ACCRUING TO PRIVATE SECTOR
Factor income from net domestic productaccruing to private sector includes thatpart of net domestic product which
accrues to private sector.
Factor Income From Net Domestic Product accruing to PrivateSector =
Net Domestic Product at FC income from property
and entrepreneurship accruing to the governmentdepartmental enterprises - savings
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11. PRIVATE INCOME
Private income is the total of factor income fromall sources and current transfers from thegovernment and rest of the world.
PRIVATE INCOME =
+NET FACTOR INCOME FROM ABROAD
+INTEREST ON NATIONAL DEBT
+CURENT TRANFERS FROM GOVERNMENT+CURRENT TRANFERS FROM REST OF THE WORLD
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12. PERSONAL INCOME
Personal income is the income actually received bythe individuals and households from all sources inthe form of factor income and current transfers.
PERSONAL INCOME = PRIVATE INCOME
- UNDISTRIBUTED PROFITS
(OR CORPORATE SAVINGS)
- CORPORATION TAX
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13. PERSONAL DISPOSABLE INCOME
Personal Disposable Income is the incomeremaining with individuals and households afterdeduction of all taxes levied against their incomeand their property by the government
PERSONAL DISPOSABLE INCOME =
PERSONAL INCOME
- DIRECT PERSONAL TAX
- MISCELLANEOUS RECEIPTS OF THE GOVERNMENTADMINISTRATIVE DEPARTMENT OR MISCELLANEOUSFEES AND FINES PAID BY THE HOUSEHOLDS.
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PROBLEMS WHILECALCULATING NATIONAL
INCOME
1. PROBLEM OF DEFINATION
2. CALCULATION OF DEPRECIATION
3. TREATMENT OF THE GOVERNMENT
4. INCOME FROM FORIEGN FIRMS
5. DANGER OF DOUBLE COUNTING
6. VALUE OF INVENTORIES
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REFRENCES : SITE:WWW.GOOGLE.COM
BOOK:Introductory Micro Economics And Macroeconomics
BY : T.R. JAIN
V.K. OHRI
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