Concept of National Income Video Lecture | Business Economics for CA Foundation

hello friends today we are going to talk
about national income but before we talk
about national anthem let us talk about
your family's income
suppose in your family your father gets
a salary of $50,000 watch a also earns
twenty five thousand rupees per month
and suppose you have if you have an
elder brother who's also working in
Mincey and he gets around fifteen
thousand so the total family income your
monthly family income would be around
ninety thousand rupees now let us talk
about your friend whose father is a
businessman and he alone earns around
one lakh fifty thousand per month this
is so easy to compare you can compare
the two families the income of the two
families very easily but how do you do
it when you have to compare the incomes
of the two countries when you talk about
two different countries because in a
country there are many economic
activities that are involved so how do
you take into consideration all those
activities and how do you arrive at
which country is doing well and which
country is poor how do you compare the
two countries you do so with the help of
national income that is why it is
important to compute national income of
a country so today we are going to talk
about national income what are the basic
concepts that are associated with it how
do we measure national income and what
have been the recent rest trends in
income growth and structure we take them
up one by one now let
talk about what is actually national
income national income is the money
value of all final goods and services
produced in a country in a given year
now let us elaborate more on this firm
first and foremost it is the money value
why do we say that it is money value
because there are many things that are
produced in a country suppose when we
are talking about income we have to
calculate the income from all sectors
like we have to calculate how much the
production of milk is in a country how
much amount of that assault or suppose
plot production of each production
everything we have to take into
consideration
now milk will be measured in liters
cloth will be measured in meters and
beat in kilograms so how will you
calculate will you add liters and meters
and then you add kgs to it no you
calculate it in the based on the basis
of money everything is calculated and
converted into rupees or money and then
it is added so what is very important is
that it should be the money value of all
final goods and services by the word
final we mean that we are not taking
into consideration the intermediate
goods or the raw materials we are not
considering intermediate goods what our
intermediate goods intermediate goods
are production by farm a or the output
of firm a is the final output but it may
be an input for Form B which again goes
into production and then a final good is
introduced by forms C which goes for
consumption so we will not talk about
the output from a form a or b we talk
about the output of firm
see which is the final good and which is
going to be consumed for example suppose
wheat is brought from the market then a
flawed mill owner converts it into floor
then a baker buys from him and converts
it into bread
so we are not taking into consideration
the price that has been paid for wheat
or the price that has been paid for flow
we will take into consideration the
price that is paid for the bread so now
you know we talk about the final goods
and services that are produced in a
country during a period of one year we
talk about one particular year maybe it
is a calendar year from January to
December but generally it is take
another physical year starting from
April till March so national income is
money value of all final goods and
services produced by a country in um
given here I hope now you have
understood it in a better manner we
talked about the money value of all the
goods and services that are produced in
a country in all even here