Various terms associated with measuring of National Income

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🌟Gross National Product (GNP) :

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🔹 Gross National Product is the total value of goods and services produced and income received in a year by domestic residents of a country.

🔹It includes profits earned from capital invested aboard
GNP = C+I+G+(X-M)+ NFIA

C= Consumption
I= Investment
G= Government Expenditure
X-M = Export – Import
NFIA = Net Factor Income from Abroad.

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🌟Gross Domestic Product (GDP) :

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Gross Domestic Product (GDP) is the total value of output of goods and services produced by the factors of production within the geographical boundaries of the country.

🌟Net National Product (NNP) :

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🔹Net National Product (NNP) is arrived by making some adjustment with regard to depreciation.
🔹NNP = GNP – Depreciation

🌟Net Domestic Product (NDP) :

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🔹Net Domestic Product (NDP) is a part of Gross Domestic Product.
🔹 It obtained from the Gross Domestic Product by deducting the Quantum of tear and wear expenses (depreciation).
🔹NDP = GDP – Depreciation

🌟Per Capita Income (PCI) :

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🔹Per Capita Income or Output per person is an indicator to show the living standard of people in a country.
🔹It is obtained by dividing the National Income by the population of a country.
🔹Per capita Income = National Income / Population

🌟Personal Income (PI) :

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🔹Personal income is the total money Income received by individuals and households of a country from all possible sources before direct taxes, therefore, Personal income can be expressed as follows.
🔹PI = NI corporate Income Taxes – Undistributed corporate profits – social security contribution + Transfer payment.

🌟Disposable Income(DI) :

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🔹Disposable income means actual income which can be spent on consumption by individuals and families, thus,it can be expressed as
🔹DPI = PI – Direct Taxes
(From consumption approach DI = Consumption Expenditures + Savings)

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