
172 | Business Environment
Figure 7.1
Selected Economic
Indicators
>
CONCEPTS OF NATIONAL INCOME
We study below the ve important concepts of national income, viz., the gross national product
(GNP), net national product (NNP), national income, personal income (PI), and disposable income
(DI). is is the basic, social accounting measure of the total output or aggregate supply of G&S.
GNP is de ned as the total market value of all nal G&S produced in a year. It is a measure of the
current output of economic activity in the country.
Two things must be noted in regard to GNP. ey are as follows:
1. It measures the market value of the annual ...