National IncomeConcepts and Measurement

Concepts related to National Product and National Income

Gross Domestic Product at MP

Features of GDP AT MP

Gross National Product at MP

Net National Product at MP

Net national product at market price

Net Domestic Product at MP

Net Domestic Product at MP

Net Domestic Income / Net Domestic Product at Factor Cost

Gross Domestic Income /Gross Domestic Product at Factor Cost

Net National Product at factor cost or National Income

Income from Net Domestic Product accruing to Private Sector

Private Income

Personal Income

Disposable Income

Measurement of national income

Income Method

Components of Income

Net National Income = Compensation of Employees + Operating Surplus Mixed (W+R+P+I) + Net Income + Net factor income from abroad

Product Method

Problem of double counting.

Value Added

Expenditure Method

Structure of National Product in terms of components of final expenditure

National Income = National Product= National Expenditure

Difficulties in the measurement

Per Capita Income