What is National Income ? Explain the following concept of National Income :GDP, GNP, NDP, NNP.
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NATIONAL INCOME-
The evaluation of money earned on all the goods and products produced inside the boundaries of a country is called the national income of the country. It does not include second-hand goods.
GROSS DOMESTIC PRODUCT-
the aggregate value of goods and products produced inside the boundaries of country.
GROSS NATIONAL PRODUCT-
It is basically the sum of GDP of the country and the foreign income in the country. Although it does not include the economic activities done by foreigners inside the country.
NET DOMESTIC PRODUCT-
After deducting depericiation from the GDP we get NDP of a country. depretiation means the wear and tear of damaged goods.
NET NATIONAL PRODICT-
It is also calculated by deduction depreciation from GNP.
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