Why does only final goods and services included in calculating the national income ?
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Why does only final goods and services included in calculating the national income
Answer :
** The economic activities conducted the company aims to produce goods and services needed by the community. If the overall goods and services produced is calculated, would have obtained national product or national income. The term most commonly used to describe the concept of national income is the gross domestic product, So the overall national income is income received by a country's economy is in a period of one year. The term national income until now used is a term that is common and widespread.
** National income is income of the entire Neto citizens as retribution all factors of production are used. To get the national income, should reduce the national product Neto. with indirect taxes and added with subsidies. Indirect tax should be deducted because it is not a retribution of factors of production. As for the subsidies must be added because it is a production factor for retribution.
Hopefully helpful ^_^
Why does only final goods and services included in calculating the national income
Answer :
** The economic activities conducted the company aims to produce goods and services needed by the community. If the overall goods and services produced is calculated, would have obtained national product or national income. The term most commonly used to describe the concept of national income is the gross domestic product, So the overall national income is income received by a country's economy is in a period of one year. The term national income until now used is a term that is common and widespread.
** National income is income of the entire Neto citizens as retribution all factors of production are used. To get the national income, should reduce the national product Neto. with indirect taxes and added with subsidies. Indirect tax should be deducted because it is not a retribution of factors of production. As for the subsidies must be added because it is a production factor for retribution.
Hopefully helpful ^_^
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