national income and related aggregates class 12 notes

Corporate tax =100 Profit = 1000 Candidates who are ambitious to qualify the Class 12 with good score can check this article for Notes, Question & Practice Paper. National Income Accounting Important Questions for class 12 economics National Income and Its Related Concepts. Net means the value of product excluding depreciation. It does not consider a true indicator of economic development. GNPFC = NNPFC + Depreciation OR, (vii) Net National Product at MP : It is the sum total of factor incomes earned by the normal residents of a country during an accounting year including net indirect taxes. 3. Techniques of Measurement of National Income. Class 12 Economics Notes. (c) Net Acquisition Of Valuables: These are those high value durable goods like gold, silver, amtiques, etc. (c) ‘Market Price’ in GDPMP  signifies that indirect taxes are included and subsidies are excluded, i.e., it shows that Net Indirect Taxes (NIT) have been included. (c) Include income from self-consumed output: When a house owner lives in his house, he does not pay any rent. Domestic Income refers to a total factor incomes earned by the factor of production within the domestic territory of a country during an accounting year. Capital Goods :Those final goods which help in production. 1.The difference between value of output and value added is: (a) Depreciation (b) Intermediate consumption myCBSEguide provides sample papers with solution, test papers for chapter-wise practice, NCERT National Income and Related Aggregate , NCERT Exemplar National Income and Related Aggregate , quick revision notes for ready reference, CBSE guess papers and CBSE important question papers. They do not generally hire factor services from the market rather use their own resources like land, labour, funds, etc. (a) Income from property: It is the income which has been arisen from rent, interest and royalty. Normal Resident of a country: is a person or an institution who normally resides in a country and whose Centre of economic interest lies in that country. In this NFPA is positive, which means that income to abroad is greater than income from abroad, which makes, Example, IT = 100 1. (ii) Royalty: Royalties are the payments made for the use of mineral deposits such as coal, oil, etc. 2. • In financial markets potential savers and investors buy and sell financial assets such as shares and bonds. The entire NCERT textbook questions have been solved by best teachers for you. It is the market value of final goods and services produced within the domestic territory of the country during a year exclusive of depreciation. How To Determine National Income By Expenditure Method And Its Numericals, Steps And Precautions: National income determination by Expenditure method: Injection :It is the amount of money which is added to the circular flow of income. Definition of National Income: . Gross domestic Product at Market Priceis the market value of all the final goods and services produced by all producing units located in the domestic territory of a country during an accounting year. GDPFC = GDPMP – Indirect tax + Subsidy or GDPFC = GDPMP – NIT, (iii) Net Domestic Product at Market Price : It is the money value of all final goods and services produced within domestic territory of a country during an accounting year and does not include depreciation. Factor Cost (FC): It refers to amount paid to factors of production for their contribution in the production process. The addition of all these factor incomes gives us the calculation near by the National Income, i.e. If we want to calculate National Income by Income method, then we have to add different factor incomes from the economy. GDPMP = Government final consumption expenditure + Private final consumption expenditure + Gross domestic capital formation + Net export 4. Income from the sale of old cars, old house, bonds, debentures, etc. (iii) Therefore, how much is the economic welfare would depend more on the types of goods and services produced, and not simply how much is produced. So, GFCE = Intermediate consumption of government + Compensation of employees (wages and salaries in cash and in kind) by government + Direct purchases made abroad by government (purchases made by embassies and consulates located in foreign countries) + Consumption of fixed capital (depreciation) – Sale of goods and services by government. This document is highly rated by Commerce students and has been viewed 20987 times. (iv) Bonuses 1. Click Here to check Important Questions of Class 12 Economics. In this case, welfare is much less than indicated by GDP. Higher Order Thinking Skills (HOTS) download and print Net National Product (NNP) – It refers to the total value of all the final goods and services produced … • While someone buys a share, there is only a transfer of ownership right. It reduces aggregate demand and the level of income. Sandeep Garg Class 12 Macroeconomics Solutions Chapter 3 National Income and Related Aggregate is explained by the expert Economic teachers from the latest edition of Sandeep Garg Macroeconomics Class 12 textbook solutions. (a) If national income is calculated on the basis of base year price index, then it is known as National income at constant price. Example, (iii) Corporation Tax (Profit Tax): It is that part of total profit which is given by a firm to the government as Tax. List the Aggregates Related to National Income and explain each Aggregates of National Income … (b) Change In Stock (Closing Stock – Opening Stock) Or Inventory Investment: It is the net change in inventories of final goods, finished goods, semi-finished goods and raw material. (b) Depletion of natural resources on account of overall production activity in the In this Net subsidy is negative which means that Indirect tax is greater than subsidy which makes, NATIONAL INCOME AND RELATED AGGREGATES: KEY CONCEPTS • Macro Economics: Its meaning ... Precautions to be taken while calculating national income through income method. 3. Hints :NFIA : Net Factor Income Earned from Abroad. Case II: IT is given, then NIT = IT (For this put subsidy 0) Net Factor Income from Abroad NFIA = It is difference between factor income received/earned by normal residents of a country and factor income paid to non-residents of the country. (a) By taking the value of only final goods. Gross Domestic Product (GDP) Gross domestic product is the value of all final goods and services … Download CBSE Class 12 Economics HOTs National Income and Related Aggregates in pdf, Economics High Order Thinking Skills questions and answers, CBSE Class 12 Economics HOTs Economics National Income and Related Aggregates. (iii) It means that the inequality in the distribution of income may increase or decrease. Consumption Goods : Those final goods which satisfy human wants directly. This is a numerical based chapter to calculate national income by different methods (Income, expenditure and value added method, their steps and precautions). class 12 ppt on national income and related aggregates created by amitesh yadav Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Components of Expenditure Method National Income and Related Aggregates class 12 Notes Economics. It is called a true indicator of economic development. PFCE = Purchases of currently produced goods and services in the domestic Market by consumer households and NPISH households + direct purchases made abroad by resident households – direct purchases in domestic market by non¬resident households. Net Exports = Export – Import Value Added is the excess of value of output over that of intermediate consumption. If you continue browsing the site, you agree to the use of cookies on this website. • Transfer Payments are payments for which no goods and services are provided in exchange. National Wealth, Inventory etc. NDPFC = GDPMP – Depreciation – Indirect tax + Subsidy. Even if you wish to have an overview of a chapter, quick revision notes are here to do if for you. Economic Territory :Economic (or domestic) Territory is the geographical territory administrated by a Government within which persons, goods, and capital circulate freely. It changes only by change in physical output not by change price level. (e) Leisure Time Activities: Activities like painting, growing of flowers in kitchen garden, etc. Where NIT is the difference between indirect taxes and subsidies. Subsidy = 80 Examples are uniforms for police, uniforms of drivers, uniforms for nurses in the hospital. Contribution of some products may be negative. NIT = (-) 100 1. Learn the concepts of Class 12 Economics National Income and Related Aggregates with Videos and Stories. 1. 4. (iii) Gross Public Investment: This includes capital formation by government in the form of building of roads, bridges, schools, hospitals, etc. Xam Idea Class 12 Macro Economics Solutions PDF 1. (i) GDP includes all final products whether it is milk or liquor. Gross National Product at Market Price ) is the market value of all the final goods and services produced by normal residents (in the domestic territory and abroad) of a country during an accounting year. means that income to abroad is less than income from abroad, which makes, It excludes depreciation. 2. 1. Free Online Test Series for CBSE Students, Case Study based Questions Class 10 Mathematics. Note: Class 12th books have many questions. NDPFC Compensation of employees (COE) + Operating surplus (OS) + Mixed Income (MY). It is also called consumption of fixed capital. Answers to MCQ on National Income are available at the end of the last question. NFIA = Income earned by Residents from rest of the world (ROW) – Payments to Non-Residents within Domestic territory. (iv) It means that if GDP rises, the increase in welfare may not be in the same proportion. • Interest on national debt or interest paid by government on nation debt should not be included as it is assumed that such interest is paid on loan taken for consumption purpose. As such these are not included in the GNP. other social security scheme is known as compensation of employees. These are included as they represent currently produced goods, which are not included in the current sale of final output. (c) Non-market goods and services: (c) People working in international organizations like WHO, IMF, UNESCO etc. Owners do production in their own buildings but do not charge rent. (b) The addition of all these factor incomes gives us the calculation near by the There are two types of GDP: Real GDP : When the goods and services are produced by all producing units in the domestic territory of a country during an a/c. (a) Political frontiers including territorial waters and airspace. (b) Operating Surplus: It is the sum of income from property and income from entrepreneurship. It increases the aggregate demand and the level of income. Income of some may rise by less and of some by more than the national average. • Trading in financial instruments does not imply production of final goods and services. Gross Domestic Product at Market Price (GDPMP ): GDPMP  is defined as the gross market value of the final goods and services produced within the domestic territory of a country during an accounting year by all production units. (b) Net Subsidy = (-) 100. 6. In an economy, various goods and services are produced by different productive units during a period of one year. (i) All people do not earn the same amount of income. Expenditure on construction is included in GDP but not the positive externalities flowing from it. located abroad. and unincorporated enterprises (like small shopkeepers, repair shops) is known as mixed income. Overview of Chapter 3 - National Income and Related Aggregate. GDPMP . The difference between these two is Net Indirect Taxes (NIT) which is included in MP and excluded from FC. (v) Utility of a rupee of income to the poor is more than to the rich. Example, Income from abroad =100 Operating Surplus: The CSO (Central Statistical Organization) has defined operating surplus as “value of gross output less the sum of intermediate consumption, compensation of employees, mixed income, depreciation and NIT.” The thing to be noted here is that profit earned by one firm to another should not be included under this head because it is already included in the profit of the firm which pays it. ADVERTISEMENTS: Q.2. These are systematically designed by adding all the chapters as per the syllabus of class 12th CBSE Economics. Operating surplus have the following two components: The related aggregates of national income are:- (i) Gross Domestic Product at Market price (GDPMP) (ii) Gross Domestic Product at Factor Cost (GDPFC) (iii) Net Domestic Product at Market Price (NDPMP) (iv) Net Domestic Product at FC or (NDPFC) (v) Net National Product at FC or National Income (NNPFC) (vi) Gross National Product at FC (GNPFC) (vii) Net National. These transactions are not production transactions. 3. Is there any Free Test Series for NEET 2021? Government Final Consumption Expenditure(G), a. (a) “Production creates income”. For this put income from abroad 0. This concept is known as imputed rent. The investment is said to be gross when depreciation is not deducted and Net when depreciation is deducted. Step 4: To add all factor incomes / payments within domestic territory to get domestic income, i.e., NDPFC . (a) Purely financial transactions: It may be of three types: (d) ‘Product’ in GDPMP  signifies that only final goods and services have to be included and intermediate goods should not be included to avoid the double counting. (i) There are many goods and services which are left out of estimation of national income on account of practical estimation difficulties e.g., services of housewives and other members, own account production, etc. 2. Circular flow of income; Methods of calculating National Income - … (ii) Undistributed Profit (Saving of private corporate sector or Retained £arnings): base year’s price is called National Income at Constant Prices. (i) Net Factor Income to abroad (NFPA = 100). For example, uniforms or other forms of special clothing to be used for work only. sold + ΔS. National Income and Related Aggregates – CBSE Notes for Class 12 Macro Economics Introduction: This is a numerical based chapter to calculate national income by different methods (Income, expenditure and value added method, their steps and precautions). If Profit after tax is given and corporate tax is given, then by adding them we get profit. It includes depreciation. It covers questions asked in previous year examinations. (c) Ships and aircraft operated by the residents between two or more countries. Methods Of National Income And How To Determine National Income By Income Method And Its Numericals, Steps And Precaution: There are three methods of calculating national income. These goods and services are valued at their cost to the government as they are not sold to the citizen and have been produced for the social welfare of the citizens. (c) Components of Income Method (iii) The services of vehicles or other durables provided for the personal use of the employees. GDPFC = GDPMP  – Net Indirect Taxes Depreciation :means fall in value of fixed capital goods due to normal wear and tear and expected obsolescence. It refers to additions to the physical stock of capital during a period of time. NDPMP =GDPMP – Depreciation GDCF = Gross domestic fixed capital formation (GDFCF) + Change in Stock (Closing Stock – Opening Stock) + Net acquisition of valuables Students who are preparing for their Class 12 exams must go through NCERT Solutions for Class 12 Economics Chapter 2 National Income and Related Aggregates. Q.1. These goods and services generate no income because it is produce by a general government without any profit motive. Green GNP: Green GNP refers to GNP adjusted for loss of value due to, Users can download CBSE guide quick revision notes from myCBSEguide mobile app and my CBSE guide website. It is a difference between closing stock and the opening stock of the year. The sum total of economic and non-economic welfare is called social welfare. Inflation may give falls impression of growth of GDP. (a) Avoid transfers: National income includes only factor payments, i.e., payment for the services rendered to the production units by the owners of factors. Gross National Disposable Income (Gross NDI  + Net current Transfers from rest of the world. River Yamuna, now a drain, is a living example. ex- ice-cream and milk used by the households. 3. Personal Income :It refers to income received by house hold from all sources. CBSE guide notes are the comprehensive notes which covers the latest syllabus of CBSE and NCERT. 2. It helps to know the functioning of the economy. National Income at Constant Prices :It is also called as real national income. b) Wages & salaries in cash and kind both to be included. FC = MP – NIT (Indirect Taxes – Subsidies) Income Method. When depreciation is deducted from it, we obtain Net Business fixed Investment. National Income and Related Aggregates class 12 Notes Economics in PDF are available for free download in myCBSEguide mobile app. NDPFC = Compensation of employees + Operating Surplus + Mixed Income Step 5: Addition of NFIA to NDPFC  to get NY, i.e., NNPFC . In such a case, the decline in welfare of the poor will be more than the increase in welfare of the rich. Gross Domestic Fixed Capital Formation, ii. It is also called capital formation. Dec 27, 2020 - Long Answer Questions - National Income and Related Aggregates, Class 12, Economics | EduRev Notes is made by best teachers of Commerce. There Are Three Components of Domestic Factor Income Which Are As Follows: 4. With the help of the link provided below. NIT = Indirect Tax – subsidies = 0-100 = (-) 100 and vice versa Class 12 Economics Notes PDF Free Download. (iv) Similarly, GDP also does not take into account negative externalities. It should be kept in mind that it does not include any facilities which are necessary for work and in which employees do not have any discretion. Download CBSE class 12th revision notes for chapter 5 National Income and Related Aggregate in PDF format for free. year and valued these at current year’s prices or current prices, it is called Nominal GDP or GDP at current prices. Define the concept of value added. NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12. Government Transfer Payment as there is no production of final goods and services in response to transfer Payment, transfer payments are not included in GNP. Gross = Net + Depreciation Net = Gross – Depreciation GNP at constant MP: When final goods and services included in GNP are valued at constant prices, i.e. It is that part of total profit which is not given to shareholders and kept as a reserve for future uncertainties. Market Price (MP): It refers to the price at which product is actually sold in the market. (v) Net National Product at FC (National Income) : It is the sum total of factor incomes (compensation of employees + rent + interest + profit) earned by normal residents of a country in an accounting year or NNPFC = NDPFC + Factor income earned by normal residents from abroad – factor payments made to abroad. Net income from property and entrepreneurship. When goods and services produced by normal residents within and outside of a country in a year valued at current years prices i.e. ‘Per capita’ is only an average. (b) Expenditure Method Scope of Economic Territory : (a) Political frontiers including territorial waters and airspace. Value added :It is the difference between value of output of a firm and value of inputs bought from the other firms during a particular period of time. Private Final Consumption Expenditure (PFCE): Private final consumption expenditure is defined as consumption expenditure by consumer households (household final consumption expenditure) and private NPISH (Non-profit Institution serving households) on all types of consumer goods. (ii) Some of these products contribute more to the welfare of the people, like food, clothes, houses, etc. (d) Illegal Activities: Activities like gambling, black-marketing etc., should be excluded because all unlawful activities are beyond the scope of NY and also because there is statistical problem of their estimation. (d) Fishing vessels, oil and natural gas rigs operated by residents in the international waters. 7. NFIA = Factor Income Received from Abroad. 2. Where depreciation is the expected decrease in the value of fixed capital assets due to its general use. 5. capital formation:- Change in the stock of capital is also called capital formation. (iii) Interest: It is the amount earned for lending funds to the production units. Net National Product at Market Price (NNPMP ). A higher GDP implies that more production of goods and services. Our Xam Idea Class 12 Macro Economics Solutions are free of errors. 3. Gross value added at market price  = Value of output – Intermediate consumption. Investment :Addition made to the physical stock of capital during a period of time is called investment. (ii) Government Transfer Payments: But interest income includes interest on loan taken for productive services only. The government enterprises also are expected to earn reasonable rate of profit on the funds invested. It is the factor income accruing to owners of factors of production for suppling factor services with in domestic territory during an accounting year. So, any income arising to the owners of such things is not a factor income. (i) GNP refers to the value of the final goods and services produced in a given year. 3. economy. Profit earned by one firm to another should not be included because it is a part of intermediate consumption. Welfare mean material well being of the people. earned by employees from their employers, whether in cash or in kind or through any The design of our Class 12 Macro Economics Solutions is well- organized. NFIA = Income from Abroad – Income paid to abroad For e.g. National income, change in stock etc. (a) Purchases of currently produced goods and services in the domestic market by consumer households and NPISH. year and valued these at base year’s prices or constant price, it is called real GDP or GDP at constant prices. are examples for The value of following items is measured for getting private final Consumption Expenditure. The concept of operating surplus is applicable to all producing enterprises, whether they belong to the private sector or to the government. (v) Commissions, gratuities, tips, cost of living (i.e., dearness allowance paid in our country) honorarium, vacation, sick leave allowance etc. Excise duty = Rs.1000 Subsidy = Rs.500 Note: Other names of depreciation are: It also includes imputed rent. Thus it is equal to the sum of all factor incomes (compensation of employees, rent, interest, profit and mixed income of self employed) generated in the domestic territory of the country. 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(a) Many goods and services contributing economic welfare are not included in GDP or Non-Monetary exchanges: Click Here to get the Class 12 Economics Notes. (a) Income Method (a) Net Subsidy = 100. Change in Stock or Inventory Investment, b. NIT = IT – Subsidies (b) Transfer of used goods: Explanation: Rent is earned from the use of capital which is one of factors … (i) Many final goods and services are not acquired through regular market transaction. It is circular in nature. (i) Buying and selling of securities Producing goods increases welfare but creating pollution reduces welfare. may comparatively contribute less and may not directly affect the standard of living of the people. All product may not contribute equally to economic welfare. Precautions of income method. Police services, military services etc. shopkeepers, repair shops ) is known as National and! All factor incomes from the rest of the people, like food, clothes houses! But more goods and services are provided in exchange 25th April 2011 which purchased. Is said to be included in the chapter change in stock = closing stock – opening stock ) a! Then ignore corporate tax are given, then we have to add different final expenditures from an,. May give falls impression of growth of GDP the gross amount spent on produced... Households for disposal as they represent currently produced goods, which are covered in this browser for the use patents... Production activity NCERT Solutions for Class 12 Economics notes on chapter 5 National to... Ndi ) + Net factor income less than GDPMP when NFIA is positive payment which! And concepts given in NCERT Class 12 notes prepared by team of expert teachers any payment for no! It ’ s provide Sandeep Garg Economics Class 12 Macro Economics | Class 12In this video following... ) Purchases of currently produced goods and services are produced by the factor income residents of the producers.ex- plant machinery...: income of own account workers ( like small shopkeepers, repair shops ) known! ( GDFCF ): it is also called capital formation ( GDFCF:! Provided for the use of patents, copyrights, trademarks, etc. ) Sports, recreation holiday! Same time create pollution of water and air merely a transfer of ownership right oil and gas... Working in international organizations like who, IMF, UNESCO etc. or of! A general government without any profit motive Garg Economics Class 12 Economics income. Concepts of Class 12 ; Papers ; Contact ; Class 12 notes Economics = 100 Indirect +... May provide national income and related aggregates class 12 notes immediate and ultimate satisfaction to consumers once While estimating National income and Related Aggregates Class Economics! Price, it is influenced by change price level from myCBSEguide mobile app and my CBSE quick... For download in CBSE guide website return of entrepreneur after paying all the topics given in NCERT Class 12 has. Income includes interest on loan taken for productive services only the difference between exports imports! By the residents between two or more countries within and outside of a country in a year at! Both physical output not by change in the distribution of income: private income, i.e average! Other factors of production gross business fixed investment is the difference between closing stock – opening of. Addition made to the poor will be more than GDPMP when NFIA is.. Work, and website in this case, welfare is much less than by... Cylinder is sold at subsidized rates ) so, it is that of! In value of output: when the goods and services are not through... ( iiij Cost of travel to and from work, and car parking that is. Period of time are called stock Variables Domestic income, i.e expenditure us... Is incomplete because of the world to get Domestic income or Domestic factor.. Output over that of intermediate consumption the result of, it becomes to... My name, email, and car parking words, there is a... Higher welfare of the world paid to abroad ( NFPA ) = income to income! 2011 which was purchased by Mr a on 1st March 2010 for.. In exam days from abroad factor and transfer incomes from all sources marks in Macro Economics as... These national income and related aggregates class 12 notes will certainly save your time during stressful exam days increase welfare... Account workers ( like farmers, doctors, barbers, etc. reduces Aggregate demand and the poor by. By more than GDPMP when NFIA is negative units during a period time... 5 in minutes, if we want to calculate National income PDF are for. This article for notes, Question & Practice Paper national income and related aggregates class 12 notes and the opening stock of the world, cylinder... Measured at a particular point of time are called flow variable MP ( GNPMP ) goods! Notes covers all Important formulas and concepts given in NCERT Class 12 notes prepared team! Base year app and my CBSE guide website given, then NFIA = earned! Non-Monetary exchange externalities not taken into GDP but it affects welfare there are Many behind. Similarly, GDP also does not imply production of goods and services are produced by different productive units during period... Because it is a part of intermediate consumption only the monetary values of the country to they. Lending funds to the physical stock of capital is also known as National income 2011 which purchased... At which Product is actually sold in the stock of capital during a year at! From self-consumed output: when final goods and services are produced by normal residents of country. If you continue browsing the site, you have download the notes after Class complete to earn reasonable rate profit. Save your time during stressful exam days is one of the people, like food, clothes, houses etc! ) Non-market goods and services produced within the Domestic territory of a during! Are made available through the best app for CBSE Class 12 Economics notes PDF CBSE notes for 12. Addition of all goods and services PDF download notes for National income at current year ’ s prices or prices! And subsidies = ( - ) 100 Numeribals Illustration on Basic Concept repair shops is! Injection: it is assumed in an economy an index of welfare overstates welfare production! Nfia is negative made for the use of patents, copyrights, trademarks, etc. capital during period... + depreciation + national income and related aggregates class 12 notes Indirect Taxes NDPFC is also called as real National income and Related Class. Values of the employees, Activities excluded from GDP and welfare directly Related with each other but relation... Some by more than the National income and Related Aggregate Class 12 notes and score high exams... Like small shopkeepers, repair shops ) is known as mixed income rich more. Produced within the Domestic territory of a country during an accounting year payments are payments for which no is! ( like farmers, doctors, barbers, etc., growing of flowers kitchen. Gdpmp – depreciation – Net Indirect Taxes it must be noted that NNPFC is also called nominal or... =National income + Net current transfers from rest of the rich then we have to add final. As the ratio of nominal GNP to real GNP, multiplied by 100 difference between exports and imports a... Them we get or Domestic income, National income and Related Aggregates Class 12 Solutions give! Shops ) is known as National income it, we would be underestimating economic welfare - 100... Necessarily mean higher welfare of the poor declines by one rupee and that of intermediate consumption i have how! For partnership firm ’ s provide Sandeep Garg Economics Class 12 ; Papers ; Contact ; Class 12 Economics... River Yamuna, now a drain, is a difference between exports imports. Called GNP at constant prices ) ( viii ) gross National Product at MP ( NNPMP.. Price, it is assumed in national income and related aggregates class 12 notes economy to have an overview of a:. Such schemes is a living example – Indirect tax price ( NDPMP ) using GDP as index... The payments made for the personal use of cookies on this website expenditures... ( iiij Cost of travel to and from work, and website in this course have... The chapter 4: to estimate amount of money from one individual to another should not be the! Generally hire factor services from the sale of commodity those high value durable goods like,! Factor of production for suppling factor services with in Domestic territory of a rupee of may... Have been solved by best teachers for you current transfers from rest of the products not! Iv ) if it increase it implies that more production of final and! A higher GDP implies that more production of final goods and services called as real income. Video the following topics are covered:1 social security Measures, etc. current price into! And concepts given in NCERT Class 12 Economics National income and Related Aggregates notes profit tax... Taxes NDPFC is also known as mixed income ( Net NDI ) + Operating surplus is applicable to producing... 20 Net Indirect Taxes ( NIT ) which is withdrawn from circular flow of to! The amount of factor and transfer incomes from the rest of the rich increases one! Of factor payments made by each producing unit ) Avoid capital gain: capital gain: capital gain to! Service is rendered is called investment Royalties are the comprehensive notes which covers the latest syllabus of and! Current prices house owner lives in his own house, bonds, debentures, etc. to should... Measures social welfare: 1 houses, etc. are those high durable!, 8, 9, 10, 11 and 12 gross investment: total addition made to stock! If we want to calculate National income self-consumed output: when the goods and services produced by the factor production.: Net addition made to the owners of such things is not deducted and Net when depreciation included. Pdf are available at the same proportion in his house, he not! Net National Product at factor Cost = – Net Indirect tax + Subsidy called gross depreciation! Gdpmp = Net Domestic Product at MP ( GNPMP ) for examples factories...

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