Saturday, August 11, 2012

Class XI, Principles of Economics, "National Income"

Definition of National Income

The term national income has been differently defined by different authors. A very simple definition of national income can be given as :

“The National Income for any period consists of the money value of the goods and services becoming available for consumption during the period.”

National income in the words of Pigou is:

“That part of objective income of the community including income derived from abroad which can be measured in money.”

It is the aggregate factor of income i.e. earnings of labour and property which arises from the current production of goods and services by the nation’s economy.

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