Question

Explain two basic concepts of National Income.

Answer 1

There are five basic concepts of National Income.
1. Gross National Product (GNP)
2. Gross Domestic Product (GDP)
3. Net Domestic Product (NDP)
4. Per Capital Income (PCI)
Gross National Product :
1. Gross National Product is the total value of goods and services product.
2. Income received in a year by domestic residents of a country.
3. It includes profits earned from capital invested abroad.
Gross Domestic Product (GDP)
Gross domestic product is the total value of goods and services produced by the factors of production within the geographical boundaries of the country.