class 12 macroeconomics Measurement of national income Notes

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

1. What is national income? how it is measure?

> Net National Product at Factor Cost (NNPfc) is known as national income. It is the sum total of Net Domestic Product at Factor Cost (NDPfc) and Net Factor Income From Abroad (NFIA).
(NNPfc) = (NDPfc) + (NFIA)
Three methods are used to calculate national income;
1. Product or value-added method: Three steps are used to calculate national income in this method.
step 1: We can classify the economy into following three sectors;
  • Primary sector
  • Secondary sector
  • Service/tertiary sector
Step 2: Net value added = Net value added of output - intermediate consumption - net indirect tax.
Step 3: Calculation of Net Factor Income From Abroad (NFIA).

2. Write the difference between primary Sector, Secondary sector, and tertiary sector.


THE END

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