Showing posts with label National income. Show all posts
Showing posts with label National income. Show all posts

Tuesday, 10 July 2018

National Income and related things

July 10, 2018 0

            National Income and Other Factors            

In the previous article, we studied GDP,GNP,NDP,NNP In this article, we will look at new components.

X = the income earned by the resident of your own country abroad
M = The income earned by the foreign person in the country

GNP = GDP + X - M
 If X is greater than M it means then income from the foreign country is higher in the country's income. that's why GDP grater than GNP
Also, if the X is less than M then the country's income is going extremes in a foreign country. GDP less than  GNP

money Indian economy

Per capita income:

 If GDP, GNP, NDP, NNP divided by the total population we can understand the income earned by per person.
From this, you can draw per capita GDP, per capita GNP, per capita NDP, and per capita NNP 
The per capita income makes sense to the participants in total income.

Money Indian Economy

Personal Income:

Personal income is the income earned by a person or a family in one financial year of any country.
Then can the personal income be called national income?
Not because a person can get income in 2 ways. For example, a pension plan by the government to older persons.
This can be said as their personal income but not called national income because only the income earned is considered in the national income.

Disposable Income:

This is a factor in personal income. The person is getting income and also the expend . Also, some parts of the income have to be paid as income tax, while some part is kept separately as a savings, so the following formula's are used when earning a disposable income.

Disposable Income = Personal income - ( income tax+ Saving)


Green GDP:

Environmental depletion due to the use of natural resources when economic growth occurs. National income can not be sustainable if environmental degradation occurs. So, it is necessary to think of the environment if it is to make sustainable development. For this, the Green GDP is counted.
Suppose a country has a GDP of 1000 rupees and while getting it 200 rupees will be damaged by the environment. To compensate for this loss, the cost of at least Rs. 50 will be to the expend that the Green Gad will cost Rs. 750 (1000 rupees - Rs. 250)
However, it is a very complicated process to measure environmental degradation.

Sunday, 8 July 2018

How to calculate What NNP

July 08, 2018 0
                                                      National Income

Money Indian Economy

Various methods are used to measure the yield of national income, including production methods, income patterns and cost method
The joint method of production and yield is used in the Indian economy.


1) Gross Domestic Product (GDP)

 Gross Domestic Product is the total amount of income for a financial year under the borders of any country. In this they consider the income earned within the borders of the country. This is not seen by the country or the foreign person, ie, who earned income

Feature:
The GD shows the internal strength of any country
The country's numerical understanding was not qualitative because of the GDP
If there is an increase in GDP every year, then it is called growth rate

Gross National Income (GNP)

The income earned by citizens from the national word is considered. For example Suppose Indians (X) working abroad will send their income to their country. Also, an alien person(M) will work in a company in India and send his income to his country. So this income is considered to be done with GNP.  so GNP = GDP + X - M
When income generated from Gross National Income is obtained with GDP, the foreign-earned income is deducted.

Feature

Due to GNP, the external power of the country was evaluated.
Organizations such as IMF will consider GNP for giving loans to the nation

 Money Indian Economy
Money Indian Economy

 Net Domestic Product (NDP):
If you deduct depreciation from the GDP, you get NDP
        NDP = GDP - Depreciation

Net National Product (NNP)

If the gross depreciates from the national income, then it gets NPP

NNP = GNP - Depreciation


The above information is useful for all competitive exams.
In the next part you will see yet more information