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  1. Meaning of National Income
  2. National Income Concepts
  3. Uses of Major National Income Concepts
  4. Ways of Measuring National Income


Meaning of National Income

National income is the monetary value of all the goods and services produced within a country over a given period of time, usually a year plus net income from abroad. It also includes the income accruable to all factors of production: land, labour capital and entrepreneur. The national income is different from the income of the government. The national income is the value of all economic activities of the country for a particular period of time while government income is the revenue raised through taxation, borrowing, fees, etc.

The government also contributes to the National Income.

In conclusion, the national income of a country is the summation of income received by the citizen of the country whether the income is earned in the country or earned in another countries minus the income generated in the country but traceable to the foreigners.

National Income Concepts

The major concepts of National Income include

  1. Gross Domestic Product (GDP)
  2. Gross National Product (GNP)
  3. Net National Product (NNP)
  4. Personal Income (PI)
  5. Disposable Income
  6. Net Domestic Product (NDP)
  7. Income Per Capita


Lesson tags: Economics Lesson Notes, Economics Objective Questions, SS2 Economics, SS2 Economics Evaluation Questions, SS2 Economics Evaluation Questions Third Term, SS2 Economics Objective Questions, SS2 Economics Objective Questions Third Term, SS2 Economics Third Term
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