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ECONOMICS (CLASS—12 ) the Related ECONOMICS (CLASS—12 ) Chapter - 2 National Income accounting The related aggregates of national income are: ❖ Gross Domestic Product at Market price (GDPMP) ❖ Gross Domestic Product at Factor Cost (GDPFC) ❖ Net Domestic Product at Market Price (NDPMP) ❖ Net Domestic Product at FC or (NDPFC) ❖ Net National Product at FC or National Income (NNPFC) ❖ Gross National Product at FC (GNPFC) ❖ Net National Product at MP (NNPMP) ❖ ❖ Gross National Product at MP (GNPMP) NOTE – Above terms are related concepts of national income. Now below the explanation of the terms. (1) Gross National product at market price (GNP @ mp)--- It is the sum of the values of currently produced goods & services without duplication, over a year,by the normal residents of an economy, gross of depreciation,where goods & services are valued at the market prices (mp). (2) Gross National product at factor cost (GNP@ fc) --- Gross national product at factor cost is the sum of the value of currently produced goods & services,over a year,by the normal residents of an economy,gross of depreciation,when goods & services are valued at factor cost. NOTE – Factor cost = Market price – Net indirect taxes (3) Net National product at market price (NNP@ mp)--- Net national product at market price is the sum of value of currently produced goods & services without duplication,over a year,by normal resident of an economy,net of depreciation where goods & services are valued at market price. (4) Net national product at factor cost (NNP @fc) --- Net National product at factor cost is the sum of value of currently produced goods & services without duplication,over a year,by the normal residents of an economy,net of depreciation,where goods and services are valued at factor cost. (5) Gross Domestic product at market price ( GDP @ mp ) ----- Gross domestic product at market price is the sum of value of currently produced goods and services without duplication,over a year,within the domestic territory of an economy,gross deprecation,valued at market price. (6) Gross domestic product at factor cost ( GDP @ fc) --- Gross domestic product at factor cost is the sum of the value of currently produced goods and services without duplication,over a year,within the domestic territory of an economy,gross of depreciation,where goods and services are valued at factor cost. (7) Net Domestic product at market price ( NDP @ mp)---- Net domestic product at market price is the sum of value of currently produced goods and services without duplication,over a year,within the domestic territory of an economy,net of depreciation,where goods and services are valued at market price. (8) Net domestic product at factor cost (NDP@mp)---- NDP at factor cost is the sum value of currently produced goods and services without duplication,over a year,within the domestic territory of an economy,net of depreciation,where goods and services are valued at factor cost. (9) Net National Disposable income (NNDY)---- NNDY is the factor and transfer incomes earned or enjoyed by the normal residents of an economy,over a year,inclusive of net indirect taxes. It is identical to NNP mp + Net current transfers from rest of the world. (10) Income from domestic product accruing to private sector (Z) --- It is the factor income enjoys by household and private corporate sector in an economy,over a year. (11) Private income (PY)---- It is the factor income and current transfers within the economy along with net current transfers from the rest of the world enjoyed by the normal residents of an economy,over a year. (12) Personal income ( PY or you can also write as personal Y ) ---- It is factor income and current transfers within the economy along with net current transfers from the rest of the world enjoyed by households of normal residents of an economy,over a year. (13) Personal Disposable Income (PDY) ---- It is factor income and current transfers within the economy along with net current transfers from the rest of the world, net of personal direct taxes and other administrative payment,at the disposal of household of normal residents of an economy,over a year. (14) Personal consumption Expenditure (C@h) --- It is personal disposable income minus personal saving (ex—savings of household),over a year. Note – Residential status(According to Income Tax Act 1961section 6(6) depend upon two basic conditions 1. गत वर्ष मे कु ल 182 दिन भारत मे रहा हो. 2. गत वर्ष मे कम से कम 60 दिन भारत मे रहा हो व गत वर् ष से पूव ष के 4 वर्ष मे कु ल millakar कम से कम 365 दिन या अधिक भारत मे रहा हो. Note— All the above topics are important form examination point of view. GAURAV KUAMR (19-4-2020) .
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