National income economics
National income – Detailed Explanation National Income is one of the most important concepts in economics. It measures the total economic activity of a country. National income tells us how much income the people of a nation earn from producing goods and services in one year. Economists, governments, and planners use national income to understand the economic strength and progress of a country. Definition National Income is the total money value of all final goods and services produced by the residents of a country during one year. It includes income earned from within the country and income earned from abroad by the residents. In simple words, national income shows how much a nation earn Key concept in national income 1. Residents (Nationals) National income counts the income of people who permanently live in the country. Even if they work abroad, their income is included. 2. Final Goods and Services Only the value of final goods is counted....
