Introduction If the gross domestic product is measured at the prevailing market price then it is known as nominal gross domestic product and if the gross domestic product is measured at a constant price or base year price then it is known as real gross domestic product. In this article, we attempt to give a […]
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Here in this article, we have tried to define personal income, disposable income, per capita income, and personal income. Personal Income (PI) Personal income can be defined as the income obtained by all individuals and households of a nation from all the possible formal sources before payment of direct personal tax or income tax during
Personal Income, Disposable Income, Per Capita Income, and Personal Saving Read More »
After discussing several key concepts of national income at market price as well as at factor cost, in this article, we attempt to establish the relationship between concepts of national income at market price and factor cost. As we know that various concepts of national income can be measured in terms of market price as
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Introduction Value maximization theory was developed as an alternative to the profit maximization theory due to weaknesses or limitations of profit maximization theory. This theory is also known as wealth maximization theory. According to this theory, value or wealth maximization is the long-run objective of the firm that guides resource allocation decisions of the firm
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Introduction to Concepts of National Income at Factor Cost Factor cost is the total cost of production. It means factor cost is the total payment made by producers to the owners of factors of production in return for their assistance in the production of goods and services. So, it is the total of all earnings
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Introduction The price given by the final purchasers of the consumer as well as capital goods is known as the market price. If we determine the values of different concepts of national income at prevalent prices of goods and services, then the concepts are said to be measured at market price. Here we try to
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This article tries to briefly introduce major concepts of national income. Concepts of National Income Meaning of Concepts of National Income The concept of national income provides insight into the economic performance of a nation. National income has been defined in several ways. It may be the total market value of all final goods and
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Meaning of National Income In this article, we explain the meaning and features of national income. You will know what national income actually is and what it measures. Meaning and Features of National Income The human resources of a nation combinedly working with capital and natural resources produce annually various quantities of goods and services.
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The key terminologies/(basic terminologies of National Income) related to national income are briefly explained below. Domestic Territory of a Country United Nations states that economic or domestic territory is the geographical territory, governed by a government within which, individuals, goods, and capital distribute freely. It includes the following geographic or electoral boundaries: Normal Residents of
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Introduction The economy is a system in which all the economic agents are interdependently working and doing their respective economic activities. It means consumers are involved in buying goods and services, producers are producing and selling goods and services, and the government is there to become part of such transactions, as well as for control
Circular Flow Model Read More »