May 2024
Intermediate to advanced
688 pages
51h 31m
English
Content preview from Business Environment, 1st Edition by Pearson
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| 16 | Part I: Fundamental Concepts
produce does not reach the market for sale. This means that though
they enjoy larger incomes, their actual national incomes would be
shown less in calculation.
Fisher’s Consumption-based De nition
According to Irving Fisher, a mathematician by training, “The
true national income is that part of the annual net produce which
is directly consumed during the year.”
3
This defi nition is more
accurate than the other two because the most important aspect of
national income is that it has been obtained by the members of the
community and consumed. The production of goods and services,
though important in itself, would not serve any purpose unless it is
consumed. If a portion of what is produced is wasted, that ...
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