Chapter 13, Problem 11AA

To determine

To ascertain: the list of categories that makes up are added to get the national income.

Explanation of Solution

National Income	a. Wages and salaries
	b. Government payment
	c. Corporate sector residual income
	d. subsidies
	e. Consumer interest

Thus, National income includes payments to people (salaries and wages and other revenue), plus government payments (taxes), plus corporate-sector residual income (depreciation, undistributed profits), less changes (subsidies, policy and market interest, and statistical discrepancies). Measuring national income is crucial for various works, such as measuring the size of the economy and the level of economic success of the country; making predictions of the economy's future trend in growth. It helps the government to devise effective development plans and policies to increase the growth levels.

Economics Concept Introduction

Introduction: Gross National Income (GNI) is classified as GDP (Gross Domestic Product; income produced by manufacturing activities in that country's economic territory) plus net income from salaries, wages, property income taxes and citizens' subsidies abroad minus domestic income.