class 12 macroeconomics Concept and aggregates related to national income most important notes

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National income....... short and easy notes for the board exam


1. What do you mean by GDPmp (Gross Domestic Product at Market Price)?
> It is the market value of final goods and services produced during the year within a domestic Territory of a country.
GDPmp = final goods and services produced within the territory of a country during a year.

2. What is GNPmp (Gross National Product at Market Price)?
>It is the market value of any goods and services produced within the domestic Territory of a country by a normal resident during an accounting year along with net factor income from abroad.

3. What is NNPmp ( Net National Product at Market Price)?
> Market value of final goods and services produced during the year + net factor income from abroad -depreciation.
NNPmp = GNPmp - depreciation

4. What is Net Factor Income From Abroad (NFIA)?
> it is the income from abroad from rent, interest, wages, profit by a resident from rest of the world, and factor income earned by non-resident within our country.

5.What is NDPmp (Net Domestic Product at Market Price)?
> Net Domestic Product at market price is the market value of final goods and services produced by all producers in a country exclusive depreciation.
NDPmp = GDPmp - Depreciation

6. NDPfc (Net Domestic Product at Factor Cost)?
> NDP means total factor income earned by the factor of production working within the country in one accounting year. It includes rent, profit, interest, and wages.
NDPfc = NDFmp - Indirect tax + Subsidy

7. GDPfc (Gross Domestic Product at factor cost)?
> It is the sum of factor income generated within the country along with consumption of fixed capital
GDPfc = NDPfc + depreciation.

8. What is NNPfc (national income)?
> It is the sum of Net Domestic Product at Factor Cost and Net Factor Income From Abroad.
Natinal income = Rent + Wages + Salary + Inerest + Profit + NFIA

9. Difference between GDP and GNP
>

10. What do you mean by private income?
> Private income referred to that Income that occurs to the private sector from all sources, both within the domestic territory as well as from rest of the world.

Private Income = Income by private domestic product + Net Factor Income From Abroad + current transfer from government + net current transfer from rest of the world + interest on Nation debts.

11. What do you mean by personal income?
> It is the income actually received by individuals and households from all sources in the form of factor income and current transfer.
Personal income = national income - corporate tax - undistributed corporate profit - social security contribution + transfer payment

POINTS;
  • GNPmp = GDPmp + NFIA
  • GNPmp = NNPmp + depreciation
  • GNPmp = GDPfc + net indirect tax + NFIA
  • GDPmp = GNPmp - NFIA
  • NNPfc = NDPfc + NFIA
  • Intermediate goods - those goods which are used either for resolve or production of Other goods. i.e., cotton is purchased for the production of cloth.
  • Final goods - Those goods which are purchased for final consumption. These will be no further production. i.e., sugar used for a household for final consumption


BONUS POINT;





THE END.






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