Simple Fundas on NATIONAL INCOME

DON'T MISS TO REVISE THE FOLLOWING FUNDAS ON NATIONAL INCOME 

  1. National income or domestic income includes only factor incomes;viz., rent,interest,profit and wages.
  2. Private income includes factor incomes as well as transfer payments (like old-age pensions or scholarships)granted by the government to the private sector.
  3. Private income does not include that part of domestic income which accrues to the government (or from rest of the world ) to the private sector.
  4. Personal income does not refer to income of any particular person in the economy.It refers to income of all individuals and households in the economy.Unlike private income,it does not include:

           a.undistributed profits (also called corporate saving)
           b.corporate profit tax

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