Mind Map Gallery National Income Accounting

National Income Accounting

National Income Accounting is a system used to measure and track the economic activity of a country. It provides a comprehensive framework for analyzing and evaluating the overall health and performance of an economy. This mind map will outline the key components and concepts involved in national income accounting.

Edited at 2023-07-20 11:19:46

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National Income Accounting

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Outline

National Income Accounting

Mrket price

Cost of Production + Indirect Taxes - Subsidies

GDP

is the value of the finished domestic goods and services produced within a nation's borders.

Natiional Income

is the value of all finished goods and services produced by a country's citizens, both domestically and abroad

Factor cost

Cost of factor of production + Subsidies (Land,Labour,Capital,Enterprise)

Basic Price

the amount receivable by the producer from the purchaser for a unit of a product minus any tax on the product plus any subsidy on the product.

Gross Value Added (GVA)

value of gross output - value of intermediate consumpution

(at basic price) = GVA(Factor cost) + product. taxes - product. subsidies

NNP

GDP - Depriciation

GNP

GDP + Income from Abroad

NNP

GNP- Depreciation

Personal Income

the total income received by the individuals of a country from all sources before direct taxes in one year.

Disposable Income

the actual income which can be spent on consumption by individuals and families.

Per Capita Income

it refers to the national income divided by the polpulation of the country

Remittances

they are not included in national income because they are considered as NOn-Economic Activity

Foreign Income

factor incomes from abroad earned in the form of rent,wages,intrest and profit....just like domestic factor income

GDP

Real GDP

when GDP is valued at constant price of past year which is a a base year

Nominal GDP

when GDP is valued at current market price

Potential GDP

total value of output that the country can produce if factor of production like labour and capital is fully utilized

Green GDP

GDP - (Loss to envoirnent on annul basis)

Capital output ratio

It expresses the relationship between the value of Capital invested and the value ofoutput..

Subtopic

Estimation of GDP

Value added method

The total market price of the final produce should be equal to the Gross Value Added.

GDP(at factor cost) = GDP(at Basic Price)

GDP(at Market Price)= GVA(at BAsic Price) + Product taxes - Product subsidies

Income Method

By totalling all the domestic income earned by the private as well as Govt. sectors.

Expenditure Method

C + I + G + (X-M)

C= Consumer spending on G/S I= Invstors spending on capital goods G= Govt. spending on public godds and services (X-M) = Net Exports ( Exports- Imports)