Category: 2. National Income Accounting

Domestic Income of an economy consists of income earned, i.e., only factor income and not transfer income by all the production units whether they are residents or non-residents, located within the domestic territory of the country, as the reward of their productive services or contribution to the flow of goods and services in the current…

National Income is the aggregate value of all goods and services produced by firms in a given financial year. It can be stated that when the aggregate revenue generated by the firms is paid out to factors of production, it equals aggregate income or National Income. The National Income can be calculated by using either…

National Income refers to the value of goods & services produced by a nation during a particular financial year. Therefore, it is the net result of all the economic activities that take place during a financial year and is valued in monetary terms. It includes payments made to various resources either in form of rents, wages,…

National Income is the aggregate value of all goods and services produced by firms in a given financial year. It can be stated that when the aggregate revenue generated by the firms is paid out to factors of production, it equals aggregate income or National Income. The National Income can be calculated by using either…

National income refers to the value of goods & services produced by a nation during a particular financial year. Therefore, it is the net result of all the economic activities that take place during a financial year and is valued in monetary terms. It includes payments made to various resources either in form of rents, wages,…

Macroeconomics tries to study the central questions of economies. Amongst these questions, the main question is how economies create wealth. In an economy, all factors of production (FoP) undergo a production flow/cycle, in the process of which, it generates wealth in the form of making payments to the factor of production, known as factor payments. Thus, the…

Every economy has a given set of natural resources, but it goes through the flow of production that adds certain value addition in these types of resources and returns produced goods and services, which differentiates a rich economy from that of a poor.  An economy produces a lot of commodities and services; therefore, to understand…

Personal, National, and Gross National Disposable Income are three different types of income calculated by economists to measure the savings and spending rates of households and the whole country. Personal Disposable Income is part of personal income that is available at the disposal of a household. National Disposable Income is the income that is readily…

Private income can be defined as the income accruing to the private sector both from domestic and international sources. Types of Private Income The private sector (Private firms Households) receives both earned income (factor income) and unearned income (transfer income). It consists of two different types of income: 1. Factor Income (Earned Income):  For the private sector, there are two…

What is Domestic Income? Domestic Income involves the value of final goods and services produced on a domestic territory of a country. It takes into account all producers doing business within the country’s domestic boundary. A nation’s domestic income (NDPFC) is generated by both the public and private sectors. Hence, it is divided into two sections: 1.…