Indian national income is expressed in terms of US$, the former looks very low. If Purchasing Power Parity (PPP) method is adopted India looks better. . .
Social and Environmental Cost While producing economic goods, many environmental and social bads are also generated. Hence, they also must be considered while enumerating National income. Summary The national income of a country describes the economic performance or production performance of a country. Economists, planners, government, businessmen and international agencies (IMF, World Bank, etc.,) use national income data and analyses them for various purposes.
National income data help in measuring changes in the standard of living over time and also enable us to compare standard of living of different countries. Level of development of a country is also measured by using national income figures. - - National Income Glossary GNP : Total money value of final goods and services produced in a country during a particular year (one year) including depreciation and net exports NNP : Total money value of final goods and services produced in a country during a particular year (one year) excluding depreciation including net exports NNP at Factor cost : The total of income payment made to factors of production Personal Income : Total income received by the individuals of a country before payment of direct taxes M O D E L Q U E S T I O N S Disposable income : It is the sum of the consumption and saving of individuals after the payment of income tax Per capita income : Annual average income of a person Social Accounts : The accounts of national income considering the social cost generated by economic activities. Unpaid services : Rendering useful services like preparation of meals, washing, leaning, bringing up children, services to friends and relatives without payment Capital sector : It includes saving and investment activities.
Transfer payments : Government makes payments in the form of pensions, unemployment allowance, subsides, etc. Part – A Multiple choice questions . Net National product at factor cost is