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There are a few.
One is the sum of final spending approach. Suppose that Ford sells a car for 10,000 and that's the only car sold in the economy. The GDP (national income) would be 10,000.
Another is the sum of incomes approach. Here, income is broadly defined to include wages and profits (i.e. income on capital).
Finally is the sum of value added approach. Let's say some company sold the parts to build the car in the first example for 2,000. Then the sum of value added looks like this
Y = 2000 + (10,000-2000) = 2000
The 2000 came from the income received from Ford to the company that sold the raw material. The 10,000 came from the amount that the car was sold for. You take 10,000-2,000 because that is the net gain from Ford by selling the car.
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Methods of calculating national income?
There are three methods in calculating the national income. One is the net output method. Another is the income method, and lastly, the outlay method.
Is interest on debentures included in estimating factor income?
yes interest on debentures is to be included in national income, this is as debentures are used fro production purposes and hence income received due to it is a part of factor income
What are the difficulties in estimating national income?
there are comparison obstacles such as: variations in income distribution amongst different countries being compared size of black market tastes and needs proportion of national income used by the government for defence.
Uses of national income?
Uses of National Income Data:- 1:National Income as a measure of economic growth - Estimates of national income at constant prices indicate economic growth of a country. 2:National Income as an indicator of success or failure of planning - If a country has adopted planning as a means of economic growth then national income data can help in assessing the achievements of planning. 3: Useful in estimating per capita income - Per capita income is obtained by dividing national income by total population of the country. 4:Useful in assessing the performance of different production sectors - Production units of a country are broadly classified into primary, secondary and tertiary sectors. These sectors generate factor incomes. The data on factor incomes generated by these sectors can be used to measure their relative contributions to national income. 5:Useful in measuring inequalities in the distribution of income - All individuals so not have the same income. It means national income is unequally distributed among people. The extent of inequality in a country can be measured from the national income data collected through the income distribution methods. 6:Useful in measuring standards of income - The expenditure method reveals consumption expenditure and investment expenditure. If the total consumption expenditure is divided by the total investment expenditure we get per capita consumption expenditure which indicates the average standard of living of the people of the country. 7:Makes international comparisons possible - We can compare the economies of any two countries on the basis of their national income data.
What are the Importance of national income with the national income concept?
the national income is that by the means of national income v can know that how much the income of country and v can find the national income dedact the all rents allowences paymants salaries and wages
What is national income accounting as a methods of national income?
Following are the method of national income accounting :-Product MethodExpenditure MethodIncome Method
Methods of calculating national income?
There are three methods in calculating the national income. One is the net output method. Another is the income method, and lastly, the outlay method.
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What has the author J V M Sharma written?
J. V. M. Sharma has written: 'Methods of estimating income-elasticity of taxes'
Is interest on debentures included in estimating factor income?
yes interest on debentures is to be included in national income, this is as debentures are used fro production purposes and hence income received due to it is a part of factor income
Cso has changed its base year for national income estimated the new base year?
the new base year of cso for estimating N.I ?
What are the difficulties in estimating national income?
there are comparison obstacles such as: variations in income distribution amongst different countries being compared size of black market tastes and needs proportion of national income used by the government for defence.
What methods are used in estimating animal populations apart from quadrats?
hi!
Uses of national income?
Uses of National Income Data:- 1:National Income as a measure of economic growth - Estimates of national income at constant prices indicate economic growth of a country. 2:National Income as an indicator of success or failure of planning - If a country has adopted planning as a means of economic growth then national income data can help in assessing the achievements of planning. 3: Useful in estimating per capita income - Per capita income is obtained by dividing national income by total population of the country. 4:Useful in assessing the performance of different production sectors - Production units of a country are broadly classified into primary, secondary and tertiary sectors. These sectors generate factor incomes. The data on factor incomes generated by these sectors can be used to measure their relative contributions to national income. 5:Useful in measuring inequalities in the distribution of income - All individuals so not have the same income. It means national income is unequally distributed among people. The extent of inequality in a country can be measured from the national income data collected through the income distribution methods. 6:Useful in measuring standards of income - The expenditure method reveals consumption expenditure and investment expenditure. If the total consumption expenditure is divided by the total investment expenditure we get per capita consumption expenditure which indicates the average standard of living of the people of the country. 7:Makes international comparisons possible - We can compare the economies of any two countries on the basis of their national income data.
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The income of a country can be calculated by three different procedures. The products produced, domestic profit and the amount spent.
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There are two main methods of estimating working capital within a firm. These include the conventional method which measures cash flow, and the concept of operating cycle.
Which of the following methods for estimating retirement income needs assumes retirement expenses will be some fixed proportion of your preretirement needs?
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