NATIONAL INCOME

National income refers to the total value of goods and services produced in the economy over a certain period of time. When the value of goods and services are measured in monetary value then we get national income. The total goods an services are known as national product. The national income is measured in a year. While calculating the national income the value of goods and services are measured in same monetary value of unit.

The national income can be expressed in the form of wage, intrest, profit and rent because goods and services are produced bylabour,capital,enterpreneurand land. If these factors of production are increased then the national income is also incresaed. National income is infiuenced by internal and external forces. Internal forces means those factors available in the country.External forces are related to international trede.