8/6/2019 Mentoring Group 2

1/15

MENTORING GROUP 2MENTORING GROUP 2MENTORING GROUP 2MENTORING GROUP 2GROUP LEADER NAMEGROUP LEADER NAME ::

Anushree YadavAnushree YadavASSISTANT LEADERASSISTANT LEADER ::

Ashish AgrahariAshish AgrahariOTHER MEMBERSOTHER MEMBERS ::

Arati ThakurArati ThakurArpita KasarArpita Kasar

Anushree RaikwarAnushree RaikwarAshutosh KushwahaAshutosh KushwahaArchana kushwahaArchana kushwaha

Alithia turnerAlithia turnerAnkita DobrialAnkita Dobrial

B.COM 2B.COM 2ndnd SEMESTERSEMESTERSECTION BSECTION B

8/6/2019 Mentoring Group 2

2/15

CCE 1

NATIONAL INCOME

(Meaning, components andproblems while calculatingnational income)

8/6/2019 Mentoring Group 2

3/15

NATIONAL INCOME The sum total of all goods and services produced in a year. It is the money value of the flow of goods and services

available in an economy.

NATIONAL INCOME COMMITTEE OF INDIA 1951

DEFINES NATIONAL INCOME AS FOLLOWS :

A national income estimates the measures the volume and

commodities of services turned out during a given periodcounted without duplication.

8/6/2019 Mentoring Group 2

4/15

1. GROSS DOMESTIC PRODUCT AT marketprice

Gross Domestic Product (GDP) is the market value of thefinal goods and services produced during a year within thedomestic territory of a country.

2. GROSS DOMESTIC PRODUCT AT factor cost

Gross Domestic Product at factor (GDPFC) is the sum totalof factor incomes (rent + interest + profit + wages)generated within the domestic territory of a country, along

with consumption of fixed capital.

GDPFC = NDPFC + DEPRECIATION

8/6/2019 Mentoring Group 2

5/15

3. GROSS NATIONAL PRODUCT AT MARKET

PRICEGross National Product at Market Price (GNPMP) is themarket value of the final goods and services produced bynormal residents of a country during an accounting year.

GNPMP = GDPMP + NET FACTOR INCOME FROM ABROAD

4. GROSS NATIONAL PRODUCT AT FACTOR COSTGross National Product at Factor Cost (GNPFC) is the sum offactor incomes earned by normal residents of a country,inclusive of depreciation during an accounting year.

GNPFC = NNPFC + DEPRECIATION

8/6/2019 Mentoring Group 2

6/15

5. NET DOMESTIC PRODUCT AT MARKETPRICE

Net Domestic Product at Market Price (NDPMP) is themarket value of final goods and services produced withinthe domestic territory of a country during a year, exclusiveof depreciation.

NDPFC = GDPMP DEPRECIATION

6. NET DOMESTIC PRODUCT AT FACTOR COST Net Domestic product at Factor Cost (NDPFC) is the sum

total of factor incomes (rent + profit + wages + interest)

generated within the domestic territory of a country duringa year.NDPFC = NDPMP NET INDIRECT TAXES

8/6/2019 Mentoring Group 2

7/15

7. NET NATIONAL PRODUCT AT MARKETPRICE

Net National Product at Market Price (NNPMP) is the marketvalue of the final goods and services produced by normalresidents of a country during an accounting year, exclusiveof depreciation.

NNPMP = GNPMP - DEPRECIATION

8. NET NATIONAL PRODUCT AT FACTOR COST

Net National Product at Factor Cost (NNPFC) is the sumtotal of factor incomes ( rent + interest + profit +wages )

earned by normal residents of a country during the periodof an accounting yearNNPFC + NDPFC + NET FACTOR INCOME FROM ABROAD

8/6/2019 Mentoring Group 2

8/15

9. NATIONAL DISPOSABLE INCOME

National Disposable Income is the income from allsources (earned income as well as transferpayments from abroad) available to residents of acountry for consumption expenditure or for saving

during a year.National Disposable Income = National Income

+ Net Indirect Taxes+ Net Current Transfers From

Rest Of The World

8/6/2019 Mentoring Group 2

9/15

10. FACTOR INCOME FROM NET DOMESTICPRODUCT ACCRUING TO PRIVATE SECTOR

Factor income from net domestic productaccruing to private sector includes thatpart of net domestic product which

accrues to private sector.

Factor Income From Net Domestic Product accruing to PrivateSector =

Net Domestic Product at FC income from property

and entrepreneurship accruing to the governmentdepartmental enterprises - savings

8/6/2019 Mentoring Group 2

10/15

11. PRIVATE INCOME

Private income is the total of factor income fromall sources and current transfers from thegovernment and rest of the world.

PRIVATE INCOME =

+NET FACTOR INCOME FROM ABROAD

+INTEREST ON NATIONAL DEBT

+CURENT TRANFERS FROM GOVERNMENT+CURRENT TRANFERS FROM REST OF THE WORLD

8/6/2019 Mentoring Group 2

11/15

12. PERSONAL INCOME

Personal income is the income actually received bythe individuals and households from all sources inthe form of factor income and current transfers.

PERSONAL INCOME = PRIVATE INCOME

- UNDISTRIBUTED PROFITS

(OR CORPORATE SAVINGS)

- CORPORATION TAX

8/6/2019 Mentoring Group 2

12/15

13. PERSONAL DISPOSABLE INCOME

Personal Disposable Income is the incomeremaining with individuals and households afterdeduction of all taxes levied against their incomeand their property by the government

PERSONAL DISPOSABLE INCOME =

PERSONAL INCOME

- DIRECT PERSONAL TAX

- MISCELLANEOUS RECEIPTS OF THE GOVERNMENTADMINISTRATIVE DEPARTMENT OR MISCELLANEOUSFEES AND FINES PAID BY THE HOUSEHOLDS.

8/6/2019 Mentoring Group 2

13/15

PROBLEMS WHILECALCULATING NATIONAL

INCOME

1. PROBLEM OF DEFINATION

2. CALCULATION OF DEPRECIATION

3. TREATMENT OF THE GOVERNMENT

4. INCOME FROM FORIEGN FIRMS

5. DANGER OF DOUBLE COUNTING

6. VALUE OF INVENTORIES

8/6/2019 Mentoring Group 2

14/15

REFRENCES : SITE:WWW.GOOGLE.COM

BOOK:Introductory Micro Economics And Macroeconomics

BY : T.R. JAIN

V.K. OHRI

8/6/2019 Mentoring Group 2

15/15