Economics Chapter 6: National Income

Total income generated within a country, excluding transfer payments.

Income received by individuals, including transfer payments.

Payments made to individuals that aren't for goods or services.

Income available to individuals for spending or saving after taxes.

Taxes on income earned directly by individuals.

Compulsory payments made to the government, not from income like taxes.

Net national income plus other current transfers from abroad.

National income after deducting depreciation.

Net National Disposable Income plus Capital Consumption Factor.

Total income from domestic output and foreign investment, before subtracting depreciation.

Income from all sources accruing to individuals in the private sector, including transfer income.

Income generated within a country's borders from domestic and foreign production.

The total value of goods and services produced in a country, calculated without adding taxes or subtracting subsidies on products.

GDP at factor cost plus production taxes minus production subsidies.

GDP at basic price plus product taxes minus product subsidies.

Total factor incomes earned in a country, net of depreciation.

Factor income earned by normal residents of a country in a year.

The price of a product which does not include taxes or subsidies.

Price of a product including production taxes and subsidies.

Final price including all taxes and excluding subsidies.

Taxes on the manufacturing of a product.

Government incentives to encourage production.

Taxes on the products themselves.

Government incentives on the product itself.

A method of calculating national income by summing the net value added by all producing units in an economy.

A method of calculating national income by totaling all factor incomes generated in the production of goods and services.

A method of measuring national income by summing the total expenditures of all spending units (households, government, and businesses).

The sector of the economy involving extraction of raw materials from the earth.

The sector of the economy involved in processing raw materials into finished goods.

The sector of the economy providing services.

The total monetary value of all goods and services produced within a country's borders in a specified period.

Gross Value Added at Market Prices. Calculates the value added by a producing enterprise by subtracting intermediate consumption from the value of its output.

The value of inputs used in the production process that are not part of the final output. These are materials/goods from other businesses.

Total amount earned from sales (including exports) plus changes in the value of inventory (stock).

The value left after deducting depreciation from the Gross Value Added (GVA MP).

The net value added calculated without including indirect taxes, but at factor cost.

The total income earned by the factors of production within a country, including the net factor income from abroad.

A method of calculating national income by summing up all the factor payments given to factors of production for their services, by all producing units within a country.

Wages, salaries, rent, interest, and profit earned by factors of production.

Negative economic factors like crime, pollution, and traffic congestion that reduce well-being.

Unpaid work that contributes to social well-being, equal to paid work in societal value.

Elements like leisure, fairness, gender equality, and community security are part of economic well-being, beyond mere monetary gains.

External effects of economic activities that aren't reflected in market transactions—can be positive or negative.

Differentiating between activities that directly improve well-being and those that only prevent a decline (e.g., police expenditure).

Increased crime leads to higher GDP due to expenses on policing, but doesn't reflect the negative social impact of crime.

Calculating national income is complex, especially in developing countries, with limitations and difficulties in measurement.

Gross National Product at Market Price. It's the total market value of all final goods and services produced by a country's citizens, regardless of where they are produced, plus net factor income from abroad.

Gross Domestic Product at Market Price. It's the total market value of all final goods and services produced within a country's borders.

Net Domestic Product at Market Price. GDP less depreciation.

Net National Product at Market Price. NDP plus net factor income from abroad.

Market price is the price of a good or service in the market, determined by supply and demand.

The cost of production to the factors of production (labour, land, capital, entrepreneur).

GDP at market price minus indirect taxes plus subsidies.

Total factor incomes earned by the factors of production within a country– that is , by domestic factors of production.

National Income.

Income received by individuals from all sources, including transfer payments.

Personal income less personal income taxes. The amount available to consumers for spending and saving.

Continuous flow of production, income generation, and expenditure in an economy.

Calculates national income by adding up the value added at each stage of production.

Calculates national income by summing all factor payments.

Calculates national income by summing all final expenditures.