National Income/Economics Study

                                                                         National Income

There are various concepts of national income. These are explained below one by one:

(1) Gross National Product (GNP).

(2) Net National Product (NNP)/National Income.

(3) Gross Domestic Product (GDP).

(4) National Income at Factor Cost.

(5) Personal Income.

(6) Disposable Personal Income.

                                             Definition and Explanation of GNP: 

The concept of gross national product (GNP) is comprehensive. It enables us to measure and analyze as to how much is the aggregate economic production of a country in a given period. The gross national product of a country (GNP) is defined as:

"The total money value of all final goods and services produced by the residents of a country in one year period".

In the words of W.C. Peterson:

"Gross national Product may be defined as the current market value of all final goods and services produced by the economy during an income period regardless of where the output is produced".