GS PAPER-3 ECONOMY
SOURCE- THE HINDU
- National Income is the total amount of goods and services produced within the nation during the given period say, 1 year. It is the total of factor income i.e. wages, interest, rent, profit, received by factors of production i.e. labour, capital, land and entrepreneurship of a nation.
- National Income (NI) is also known as National Income at factor cost which means total income earned by resources for their contribution of land, labour, capital and organisational ability. Hence, the sum of the income received by factors of production in the form of rent, wages, interest and profit is called National Income.
- National Income is Net National Product at factor cost.
- NNP at factor cost = National Income (NI ) = NNP at market prices – (Indirect taxes – Subsidies).