Skip to main content

Explain Measurement Of National Income or Explain Measuring GNP

if they ask you explain measurement of national income
explain measuring GNP (gross National Product) 
Note yeh dosra economics ka important answer hai jo har saal long mein ata hai 
XI Economics Measurement Of National Income or Measuring GNP

Ans)MEASUREMENT OF NATIONAL INCOME OR MEASURING GNP

National income can be measured by three ways.

PRODUCTION METHOD OR NATIONAL INCOME AT MARKET PRICE METHOD
According to this method first economy is divided into different sectors such as agriculture, industrial, mining, and other services etc. at the second stage, the market value of goods and services produced each sector aggregated and then Gross National Product (GNP) is achieved. After that total depreciation cost, indirect taxes are deducted and subsidies are added in GNP and then we get National Income.
Formula: NI = GNP – D.A – INDIRECT TAXES + SUBSIDIES

Sector of economy
Values of goods & services produced in a year
Total agricultural production
Total Industries production
Total Mineral production
Total Services
Remittances come from abroad 

Rs. 50000
Rs. 50000
Rs. 50000
Rs. 50000
Rs. 50000
G N P          Rs. 250,000
Less: - Allowances for depreciation     Rs. (20000)
Less: - Indirect taxes     Rs. (20000)
Add: subsidies                                                    Rs. 10000
                                                     N.I              Rs.  220,0000

INCOME METHOD OR NATIONAL INCOME AT FACTOR COST METHOD

This method approaches national income from its distribution side when it has been distributed to the factors of production in the form of rent, wages, interest & profit, amongst the various factors of the production in a country. If we aggregate rent, wages, interest & profit received by the people during a year we get national income Therefore national income can also be measured as:

National income = rent + wages + interest + profit
You May Like These Topics (app ko sayad yeh topics pasand aye)

Define Utility. Briefly Discuss Various Concepts Of Utility



Law of Diminishing Marginal Utility


National Income & Various Concept Of National Income

EXPENDITURE METHOD
This method arrives at National Income by adding up all the expenditures made goods and services during a year in a country. National Income can get by adding up all consumption expenditures, and investment expenditure made by individuals as well as govt. of a country during a year. That’s expenditures given below

  • PRIVATE CONSUMPTION EXPENDITURE
The amount, which was spent on consumer goods and services by private sector (individual), is called private consumption expenditure.

  • PRIVATE INVESTMENT EXPENDITURE
The amount, which was spent on replacement, renewals and new investment by private sector (individual), is called private investment expenditure.

  • PUBILC CONSUMPTION EXPENDITURE
The amount, which was spent on consumer goods and services by public sector (government), is called public consumption expenditure.

  • PUBLIC INVESTMENT EXPENDITURE
The amount, which was spent on replacement, renewals and new investment by public sector (government), is called public investment expenditure.

  • NET FOREIGN INVESTMENT
  • NET EXPORT


EXPENDITURE METHOD
(It means expenditure on the purchase of final goods and services)
Consumption
Expenditure (C)
1. Durable goods such as car, furniture
2. Non durable goods such as food, petrol
Rs 2,000
Private Investment (I)1. New plant and machinery
2. Inventory/ Stocks investment
Rs 1,500
Government Expenditure (G)1. Non Development expenditure such as Salaries to employees
2. Development expenditure such as Construction of roads and dams
Rs 1,000
Foreign Expenditure
(X – m)
1. Exports = Rs 800 minus
2. Imports = Rs 300
Rs 500
Total Expenditure or Gross National ProductRs. 5,000


Explain Measurement Of National Income or Explain Measuring GNP in pdf
Kiya app yeh sabak download karna chahtey hai ager ha toh download server per click karey

Comments

Popular posts from this blog

Free Download Notes XI & XII Commerce Notes & Book In Pdf

Free Download Notes XI & 1st Year Notes Download In Pdf XI Accounting Book  Economics Notes Pdf Free Download Urdu Notes for 1st Year (Class 11)  Another Urdu Notes For XI  Islamiat For XI  Principle Of Commerce 1st year XI POC Notes (Best) Server 01 XI POC ( Principle of Commerce ) Guess Paper Solved 2021 Free Download Notes  XII Commerce Notes & Book In Pdf XII Accounts Book With Solutions 2nd-year Urdu Notes Free Download Pdf XII English Notes Pdf 2nd Year English Notes Adam jee  2nd Year Commercial Geography  2nd Year Pak Studies Notes XII Pak Studies Notes In English Adam Jee XII Pak Studies Solved Paper XII Banking Notes (Shah Commerce) Another 2nd Year Banking Notes XII  CG Solved Papers Commerce Online Notes By Sir sultan hamid hussain (All credit goes to Sir Sultan) Server 01 Commercial Geography Notes In English By Sir Sultan Server 01 Commercial Geography Notes Notes In Urdu By Sir Sultan Server 01 XII Banking Notes Short Q

Questions And Answers The Count’s Revenge By J.H.Walsh

THE COUNT’S REVENGE (J.H.WALSH) Q: 1 What Arab custom is referred in the short play “The Count’s Revenge”? An Arab custom mentioned by the Countess of Morcerf to Albert and the Count of Morcerf when the count of Monte Cristo leaves their house without eating anything. The custom runs as “Never to eat food at the house of a deadly enemy”. She strongly believes that since the Count of Monte Cristo has a faith in that custom and thinks them to be his enemy, and hence not eat anything at their place.   Q: 2 What do you know about the reaction, plans or intention of Albert? Albert, the brave young son of the count of Morcerf, was deeply shocked by the disgrace of his father and family. As a man of honour, he showed severe emotional reaction to the unhappy incident. Albert made his mind to trace about the unknown enemy of his family and avenge the family honour. On his request, Beauchamp, a close friend of Albert, discovered the name of the enemy. It was Albert;s

English Essay Problems of Karachi

Problems of Karachi Karachi is the biggest city in Pakistan and one of the most thickly populated cities in the world. Its population has increased rapidly and accordingly has given rise to many social problems. People of this metropolis are becoming more and more concerned about solving these serious problems, some of which are discussed below. The ever-increasing rush of heavy traffic on the roads is resulting in heavy loss of human life. One day or the other, people suffer from accidents due to reckless driving. Some lose their vehicles and some go to the police. This is due to lack of civic sense in the citizens and violation of traffic rules. Traffic jams, road quarrels, untidiness and damage of public property are also the results of this problem. The government has not done any planning to control this situation in the past two decades. In the same manner, the government has never emphasized upon population distribution. As a result, slum areas are rapidly being built, wher

Short Questions Answers of The Prisoner of Zenda ~Drama Novel Prisoner of Zenda

 N OVEL Question 1)Tell in your own words how the first meeting came off between the two distant cousins? Answer) Rudolf leaves the inn one day as he is given an opportunity to stay at Jahan’s sister at Strelsau. Instead of going, he decides to walk through the forest and have a look at the castle of Zenda. He sits down in the forest to have some rest as well as smoke a cigar. After smoking his cigar, he unintentionally falls asleep. Shouts and sound of laughter wake him up. On opening his eyes, he sees two men standing near him. They are Fritz Von Tarlenheim and Colonel Sapt. They tell him that he looks exactly like their king except that he has a beard. At that moment King Rudolf appears. Rassendyll greatly surprises to see king Rudolf in the forest of Zenda. He gives a cry when he finds that Rudolf is just like him. Rudolf’s face and appearance are quite like his own. Rudolf’s height appears to be slightly less than his. Rassendyll bows respectfully before the king. In a happy m