Tamilnadu Samacheer Kalvi 12th Economics Notes Chapter 2 National Income Notes
→ The national income of a country describes the economic performance or production performance of a country.
→ Economists, planners, government, businessmen and international agencies (IMF, World Bank,, etc.,) use national income data and analyses them for various purposes.
→ National income data help in measuring changes in the standard of living over time and also enable us to compare standard of living of different countries.
→ Level of development of a country is also measured by using national income figures.
→ Capital sector: It includes saving and investment activities.
→ Disposable income: It is the sum of the consumption and saving of individuals after the payment of income tax.
→ GNP: Total money value of final goods and services produced in a country during a particular year (one year) including depreciation and net exports.
→ NNP at Factor cost:The total of income payment made to factors of production.
→ NNP: Total money value of final goods and services produced in a country during a particular year (one year) excluding depreciation including net exports.
→ Per capita income: Annual average income of a person.
→ Personal Income: Total income received by the individuals of a country before payment of direct taxes.
→ Social Accounts: The accounts of national income considering the social cost generated by economic activities.
→ Transfer payments: Government makes payments in the form of pensions unemployment allowance, subsides, etc.
→ Unpaid services: Rendering useful services like preparation of meals, washing, cleaning, bringing up children, services to their friends and relatives without payment.