Meaning: In general sense of the term ‘National Income’ refers to the total money value of all final goods and services produced in the country during a period, usually one year. It includes net income from abroad. But does not include depreciation.
Definitions:
- Prof. AC. Pigou: ‘The national dividend is that part of the objective income of the community including of course income derived from abroad, which can be measured in money.”
- Prof. Irving Fisher: “National dividend or income consists solely of services as received by ultimate consumers whether from their material or from their human environments.”
- National Income Committee: “A National Income estimate measures the volume of commodities and services turned out during a given period counted without duplication.” Here, the National Income is calculated without double counting.
