National Income Essay -- Income Economy Economics Essays

National IncomeNational income is a broadsheet of the value of the output of the good enough and services produced by an economy over a period of time. It is defined as a flow of output.Economic essayNational income is a measure of the value of the output of the goodand services produced by an economy over a period of time. It isdefined as a flow of output. A movement why we need to collect nationalincome figures is to provide an accurate estimate of changes in thevolume of output produced during one year, which can then be comparedwith new(prenominal) years. In order to see what has happened to the realnational income when two years are compared, we must remove theeffects of inflation on the prices of data, so that we dont bearmisleading data.National income can be measured by GDP, gross national product and NNP. GDP is the GrossDomestic Product it is the value of output produced by factors of end product located within a certain country. GNP is Gross NationalProduct this measu res the total value of output produced, and incomesreceived by a countrys residents from the ownership of resources,wherever these happen to be located. GNP therefore takes account ofthe fact that some of that countrys residents earn incomes such asrent and profit from owning resources located abroad. thence GNPincludes the full value of plant and equipment produced during thecourse of a year. Net national product is Gross National Product minusDepreciation. Depreciation is the line of descent of existing plant andequipment over a period of time, that id declined due to wear and tearand obsolescence. NNP is the aggregate that is nigh usually taken tomean national income. GNP is more of the official measure for nationalincome, however ... ...wever not because it has a outstanding economy but because of all the oil it exports. In reality Oman doesnt pop the question a wide variety of goods or services and therefore its regular of living is perhaps worse than countries with lower GNPs. Also a countrys GNP whitethorn be high, however most of the output it might produce may be exported, meaning that locals dont have all these outputs to choose from and so there standard of living isnt that great.Therefore using national income to make international comparisons ofliving standards has its benefits and limitations, however thelimitations that arise are far greater than the advantages. Howevercurrently it the most efficient method to use for making internationalcomparisons for standard living and until a new more reliableprocedure is created, it is the one that we are make to use.