Economics - National Income
ECONOMICS
TITLE : NATIONAL INCOME
TEAM MEMBERS : SARAH CHIN, ARDEN, NURUL NADYRAH & FIR DAUS
LECTURER : MR.MANO
TABLE OF CONTENT
1. INTRODUCTION TO NATIONAL INCOME 3, 4
2. BACKGROUND OF NATIONAL INCOME 5, 6
3. THE MEASUREMENT OF NATIONAL INCOME 7, 8
4. THE PROBLEMS IN MEASURING NATIONAL INCOME 9,
5. PROBLEMS OF COMPARISON OF NATIONAL INCOME BETWEEN 10
COUNTRIES
6. CONCLUSION 11
7. REFERENCES 12
INTRODUCTION
National Income or national product or national expenditure is the total value of all goods or services produced or created by a nation within a certain period of time, usually one year. National Income also refers to a total value of expenditure by all groups of a population on goods and service produced by an economy in one year. Moreover, national income is also the total value of income received by all factors of production such as labour, land, capital and entrepreneurs in a nation in a certain period of time, usually one year. The measures related to national income:
Gross Domestic Product
Gross domestic product (GDP) is the total final value of goods and services created by factors of production available within a nation in one year. The Value of GDP does not take into account whether the factors of production are owned by local citizens or by citizens of other nations. Final goods are goods that are ready to be used by the end user. Intermediate goods are goods that are used in the production of final goods. Therefore, the values of intermediate goods are excluded from the calculation of GDP, as the values are included in the price of the final good.
GDP can be measured at market price or at factor cost. GDP at market price is the assessment of the nation 's production based on current or market price and GDP at factor cost is the assessment of the
TITLE : NATIONAL INCOME
TEAM MEMBERS : SARAH CHIN, ARDEN, NURUL NADYRAH & FIR DAUS
LECTURER : MR.MANO
TABLE OF CONTENT
1. INTRODUCTION TO NATIONAL INCOME 3, 4
2. BACKGROUND OF NATIONAL INCOME 5, 6
3. THE MEASUREMENT OF NATIONAL INCOME 7, 8
4. THE PROBLEMS IN MEASURING NATIONAL INCOME 9,
5. PROBLEMS OF COMPARISON OF NATIONAL INCOME BETWEEN 10
COUNTRIES
6. CONCLUSION 11
7. REFERENCES 12
INTRODUCTION
National Income or national product or national expenditure is the total value of all goods or services produced or created by a nation within a certain period of time, usually one year. National Income also refers to a total value of expenditure by all groups of a population on goods and service produced by an economy in one year. Moreover, national income is also the total value of income received by all factors of production such as labour, land, capital and entrepreneurs in a nation in a certain period of time, usually one year. The measures related to national income:
Gross Domestic Product
Gross domestic product (GDP) is the total final value of goods and services created by factors of production available within a nation in one year. The Value of GDP does not take into account whether the factors of production are owned by local citizens or by citizens of other nations. Final goods are goods that are ready to be used by the end user. Intermediate goods are goods that are used in the production of final goods. Therefore, the values of intermediate goods are excluded from the calculation of GDP, as the values are included in the price of the final good.
GDP can be measured at market price or at factor cost. GDP at market price is the assessment of the nation 's production based on current or market price and GDP at factor cost is the assessment of the
References: 1. http://studypoints.blogspot.com/2011/05/difficulties-of-measurement-of-national_6661.html 2. http://economydetail.blogspot.com/2010/02/difficulties-in-measuring-national.html