What is the term meant national income?

A national income estimate measures the volume of commodities and services turned out during a given period counted without duplication.

National income is the monetary measure of:·        

>The net value of all products and services·        

> In an economy during a year·        

>Counted without duplication·     

> After allowing for depression·        

>Both in the public and private sector of products and services·   

> In consumption and capital goods sector·     

> The net gains from international transactions.

I support all the answers

total income for government for items and product and service through a limit time

and the use to know what the total net income to prepare the financial new year

AGREED WITH MR.KRISHNA............. & YOUR OWN SMART ANSWER,,,,,,,,,

National income, total income earned in a country during a certain period of time, usually one year. This figure shows that the country was concerned that they grow or decline. Economists and using national income figures to compare the economies of different countries. Determine the national income. Economists calculate national income in one of two ways: The first method relies on what projects acquired by individuals and businesses, while the other method depends on the size of the production inventory of goods and services. And each of the two methods lead to the same private national income figure because Micsabh people equal to the value of what was produced goods and services. It includes national income statement based on the earned-income people Maictsabh phrase in a country in a given period. This includes earned income, wages and salaries, interest and dividends, and rents.

The national income is the total net values of all goods and services produced  within a nation over a specified period of time, generally one year.

 

Thanks for the invitation

Well...........Good question

Agreed with both answers given by

Mr.:Vrindavan & Mr.:Kooli as well too

 

 

Agree with Mr. LABIB KOOLI

 

National income is the total value a country’s final output of all new goods and services produced in one year. Understanding how national income is created is the starting point for macroeconomics. The national income identity This relationship is expressed in the national income identity, where the amount received as national income is identical to the amount spent as national expenditure, which is also identical to what is produced as national output. Throughout macroeconomics the terms income, output and expenditure are interchangeable. See also: the circular flow of income National income accounts Since the1940s, the UK government has gathered detailed records of national income, though the collection of basic data goes back to the17th Century. The published national income accounts for the UK, called the ‘Blue Book’, measure all the economic activities that ‘add value’ to the economy. Video courtesy of ONS Adding value National output, income and expenditure, are generated when there is an exchange involving a monetary transaction. However, for an individual economic transaction to be included in aggregate national income it must involve the purchase of newly produced goods or services. In other words, it must create a genuine addition to the ‘value’ of the scarce resources. For example, a transaction that involves selling a second-hand good, and which was new two years ago does not add to national income, though the original production and purchase does. Transactions which do not add value are called transfers, and include second-hand sales, gifts and welfare transfers paid by the government, such as disability allowance and state pensions. The creation of national income The simplest way to think about national income is to consider what happens when one product is manufactured and sold. Typically, goods are produced in a number of 'stages', where raw materials are converted by firms at one stage, then sold to firms at the next stage. Value is added at each, intermediate, stage, and, at the final stage, the product is given a retail selling price. The retail price reflects the value added in terms of all the resources used in all the previous stages of production. Final output In accounting terms, only the value of final output is recorded. To avoid the problem of double counting, only the value of the final stage, the retail price, is included, and not the value added in all the intermediate stages - the costs of production, plus profits. In short, national income is the value of all the final output of goods and services produced in one year. Example For example, consider the production of a motor car which has a retail price of £25,000. This price includes £21,000 for all the costs of production (£6,000 for components, £10,000 for assembly and £5,000 for marketing) plus £4,000 for profit. To avoid double-counting, the national income accounts only record the value of the final stage, which in this case is the selling price of £25,000. Components Assembly Marketing Profits Price Value added - Costs of production and price £0 £6K £12K £18K £24K £30K £6K £10K £5K £4K £25K When goods are bought second-hand, the transaction does not add new value and will not be included in national output.If second-hand goods are included, double-counting will occur, and this would falsely inflate the value of national income. For example, if the car in question is sold in two year’s time for £15,000 it would provide the owner with money, but the sale will not add to national income. If it were included in national income, it would make the value of the car £35,000 - the initial £25,000 plus the second hand value of £15,000. This is clearly not the case, so any future second-hand sales are not included when valuing national income. Such second-hand transactions are called transfers. Calculating national income Any transaction which adds value involves three elements – expenditure by purchasers, income received by sellers, and the value of the goods traded. For example, if a student purchases a textbook for £30, spending = £30, income to the bookseller = £30, and the value of the book = £30. All of the transactions in an economy can be looked at in this way, giving us three ways to measure national income. There are three methods of calculating national income: The income method, which adds up all incomes received by the factors of production generated in the economy during a year. This includes wages from employment and self-employment, profits to firms, interest to lenders of capital and rents to owners of land. The output method, which is the combined value of the new and final output produced in all sectors of the economy, including manufacturing, financial services, transport, leisure and agriculture. The expenditure method, which adds up all spending in the economy by households and firms on new and final goods and services by households and firms. Chained value measurement The components of national output are valued according to their importance to the overall economy. The weights used were based on estimates made every5 years, but, from2003, an annual adjustment to the weightings was introduced to improve the reliability of the weighting - a process called annual chain linking. This allowed for a more up-to-date, and therefore a more accurate measure of changes to the level of national income.

income/revenue of the state, government

Total returns of various factors of production: from work, and capital, and land, and organizational ability, which contributed to the economic activity, during a specified period, usually one year represents a habit. Thus, it is equivalent to the sum obtained by members of the community, of wages and benefits and rents and profits, in return for their participation in productive activity.