national income on national product is a monetary measure of the income generated from within the country plus net income received from abroad during the year in other word it is the sum of the domestic factor income and the net factor income from abroad
According to SamueJson "National income is the loose name which give for the money measure of the overall flow of good and service in the economy"
Importance of National Income
- It will be in the overall production of the country as the sea to measure the level of production in the year in the country
- the national income estimates show the contribution made by the various sector of the economy such as trade agriculture manufacturing industry etc
- the national income estimates measure the share of working class and share of the property owners
- the standard of living and the level of economic Welfare of the people living in very may be compared with the help of national income estimates
- national income estimates are very much useful for formulating plans and for fixing in target of production
- with the help of national economy is growing, declining or stagnant
- national income estimates Emphasis the distribution of national income among guest different category of income such as rent wages interest and profit
- the figure consumption saving and investment in the economy may be estimated with the help of national income
