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.
