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Question
Answer in brief.
Give different definitions of National Income.
Solution
National income is the total market value (in monetary terms) of all final goods and services produced by the firms during an accounting year. In other words, it can be defined as the aggregate of all factor incomes flowing from the firms to the households (i.e. by aggregating the rent, wages, interest and profit earned in the economy). The different definitions of national income are as follows,
According to Dr. Marshall, "the labour and capital of a country acting on its natural resources produce anually a certain net aggregate of commodities, material and immaterial including services of all kinds.... This is true net annual income or revenue of the country or national dividend".
According to Fisher, "the national dividend or income consists solely of services as received by ultimate consumers, whether from their material or from their human environment".
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