National income - a measure of the country's wealth

In macroeconomics there is such a thing as national income.It is an economic indicator that characterizes the totality of the primary income of all residents of the country.When this indicator is calculated as the sum of not only the results of economic activities within the borders of the country but also abroad (considered to be the income of residents who went abroad), as well as revenues paid to other states.

national income - the sum of the country's primary cash revenues that are included in the gross national product, and the profits that have been obtained from abroad minus the funds placed abroad.This indicator can also be studied as the sum of all income (wages, payments on shares, bonds, interest on deposits, etc.) production industries.

first consider the national income apart from industrial activity became the founders of Marxism-Leninism.Pervoprohodchikom, the "father" of this indicator was William Petit - English economist.Then his doctrine developed Physiocrats, Adam Smith and David Ricardo.However, none of them had the strength to fully understand this concept as national income.This was done only to Marx.It was he who began to consider not only the income of all segments of the population, but the very value of output.Marx was the first to be considered separately is such a thing as a fund consumption and such a thing as the accumulation fund.He also gave a full description of each indicator, explaining their functional load.Legendary teachings of Marx continued Vladimir Lenin.

At this stage, there are many interpretations of the judgment of the great artists, but they are, in the end, have the same meaning.

national income - the difference between the net national product, and indirect taxes.Also here can be attributed grants and subsidies granted by the state business.Similarly out, if we consider this figure as a pure product of the entire company or the newly created value.Net National Product (NNP) - a figure representing the difference of the gross national income, depreciation and amortization.

To calculate the national income can be used a variety of ways.In the USSR the production method used.When it is added the gross output of each industry, each production related to various types of ownership.After that, the next step is to calculate the cost of all the material consumed for production.When subtracting from the gross output of the found amount of material costs and get the desired number - the national income.The formula looks like this:

VP - MZ = ND, where

VP - gross output;MH - material costs;LP - the national income.

After analyzing each branch of production and adding the resulting figures can be found the country's national income.

Gross production created for the year consists of two parts - the newly created and previously created product.For example, in the factory, producing furniture, consider accessories, a variety of components that have been used in the manufacture of furniture.But these details have already been taken into account in the factory.Therefore, when calculating the gross output of possible double counting, which is not the national income (after all expenses are excluded).