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National Income

National income is the sum total of goods and services produced by using natural resources, labour, capital and organisation in one year.

Gross National Product
 (GNP): Aggregate value of all goods and services produced in a country in one year.


Net National Product (NNP) = GNP – Depreciation


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Methods of Calculation of National Income

  • Product method = Sum total of all goods and services
  • Income method = Income of each factor of production
  • Expenditure = Expenditure invented for production and amount derived after deducting imports from exports.

Labour—Physical labour is usually served for monetary reward. It is an important factor of production. Mahatma Gandhi and Basaveshwara believed in dignity of labour.

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