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The sectoral contribution of 3 sectors to national income employment have changed over a period explain above in the context of structural changes in Indian economy?
k
Discuss the advantages and disadvantages of national income of an economy?
main advantages of national income:- 1:Study of All important sectors & Industries 2:An important fact for measuring economic development of Develop countries 3:Analysis of different sectors
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.
How is national income estimated by production method?
The production method measures the contributions of the different industrial sectors of the economy to GDP at market price. According to this method the value of goods and services produced by productive enterprises is known as National Income/output. To determine output of various sectors,the economy is classify into primary,secondary and tertiary sectors. It should be noted that the total value of goods and services produced in the above sectors is not the national income. While determining national income we must deduct the cost of the inputs. Thus, GNP at Market Price= Value of goods and services produced minus Cost of raw materials and intermediate inputs. Or, GNP at FC=GNP at market price minus indirect taxes minus subsidies.
What is the formula for finding countries national income?
Basically we calculate the national income on the basis of Indian economy that has been divided into 13 sub sectors under primary, secondary and tertiary sector.
The sectoral contribution of 3 sectors to national income employment have changed over a period explain above in the context of structural changes in Indian economy?
k
Discuss the advantages and disadvantages of national income of an economy?
main advantages of national income:- 1:Study of All important sectors & Industries 2:An important fact for measuring economic development of Develop countries 3:Analysis of different sectors
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.
How is national income estimated by production method?
The production method measures the contributions of the different industrial sectors of the economy to GDP at market price. According to this method the value of goods and services produced by productive enterprises is known as National Income/output. To determine output of various sectors,the economy is classify into primary,secondary and tertiary sectors. It should be noted that the total value of goods and services produced in the above sectors is not the national income. While determining national income we must deduct the cost of the inputs. Thus, GNP at Market Price= Value of goods and services produced minus Cost of raw materials and intermediate inputs. Or, GNP at FC=GNP at market price minus indirect taxes minus subsidies.
What is the formula for finding countries national income?
Basically we calculate the national income on the basis of Indian economy that has been divided into 13 sub sectors under primary, secondary and tertiary sector.
What are the changes in the size and pattern of contribution of primary sector to national income of India?
objectives
What is personal income in economics?
National income minus social security contribution, Corporate income taxes, undistributed corporate earning, and transfer payments.
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.
Which model illustrates the continuous flow of spending production and income between the different sectors in an economy?
economic cycle
What is the importance of measuring national income?
to measure standard of living in a country GDP in generally use to measure the productivity in a country, to compare different sector's of economy, which sector is progressing at what speed, as it is progressing at the desired speed or not to measure the growth rate in crease in GDP generally shows the growth in the country GNP generally shows the standard of living and GDP generally shows the productivity in the country government planning needs data for forecasting of economic resources and to achieve targets, the national income figure gives the clear indications about the scares resources to achieve different targets to measure the distribution of income in different sectors, so the importance of sectors and the priority sectors so that investment should be done on that sector say banking in rural areas
What is disposable national income?
net national disposable income is a sum of the gross disposable income of the institutional sectors. Net national disposable income may be derived from net national income by adding all current transfers in cash or in kind receivable by resident institutional units from non-resident units and subtracting all current transfers in cash or in kind payable by resident institutional units to non-resident units.
What is net national disposable income?
net national disposable income is a sum of the gross disposable income of the institutional sectors. Net national disposable income may be derived from net national income by adding all current transfers in cash or in kind receivable by resident institutional units from non-resident units and subtracting all current transfers in cash or in kind payable by resident institutional units to non-resident units.
