JM Keynes a famous economist defined national income as follows-
National Income is the money value of all goods and services produced in a country during a year.
SOURCES OF INCOME:-It is not that countries which are endowed with a bounty of natural wealth minerals or forests or the most fertile lands - are naturally the richest country. In fact, the resource-rich Africa and Latin America have some pf the poorest country in the world, whereas many prosperous countries have scarcely natural wealth.
There was a time when possession of natural resources was the most important consideration but even then the resources had to be transformed through a production process. The economic wealth or well being of a country thus does not necessarily depend upon the mere possession of resources; the point of how these resources are used in generating a flow of production and how, as a consequence, income and wealth are generated from that process. People combine their energy with a natural and manmade environment within a certain social and technological structure to generate a flow of production.
GROSS DOMESTIC PRODUCT:-GDP is the total money value of all final goods and services produced with in the geographical boundary of the country during a financial year.
