What is national income? It's meaning and definitions.
MEANING National Income is a term which has been used synonym to national dividend, national output and national expenditure. On this basis National Income has been defined in a number of ways. In common words, National Income means the total value of goods and services produced annually in a country. In other words, the total income accruing to a country from economic activities in an year's time is known as national income. It includes payments made to all resources in the form of wage, interest, rent and profits. DEFINITIONS The definitions of national income can be grouped into two classesclasses:- Traditional Definitions and Modern Definitions. 1) TRADITIONAL DEFINITIONS A) Marshall's definition - According to Marshall, " The Labour and capital of a country acting on its natural resources produce annually a certain net aggregate of commodities, material and immaterial including services of all kinds. This is the true net annual inco...