National Income: Where It Comes From and Where It Goes
Subject: Economics | Topics:

National Income: 

National income is the total value a country’s final output of all new goods and services produced in one year. Understanding how national income is created is the starting point for macroeconomics.

A quite simple but powerful analytical model built around buyers and sellers pursuing their own self-interest (within rules set by government). It’s emphasis is on the consequences of competition and flexible wages/prices for total employment and real output. Its roots go back to 1776 in Adam Smith’s Wealth of Nations. The Wealth of Nations suggested that the economy was controlled by the “invisible hand” whereby the market system, instead of government would be the best mechanism for a healthy economy.

Related Economics Paper:

Popular Economics Paper:

Report on Economic Development in Bangladesh

Introduction The major objectives of planned development have been increased national income, rural development, self-sufficiency in food, and increased industrial production. However, progress in achieving development goals has been slow. Political turmoil and untamed natural hazards of cyclone .....

Report on The Contribution of Garments Industries in Bangladesh Economy

INTRODUCTION The shift from a rural/agro based economy to an urban/industrial economy is an essential part of the process of economic development. Although policymakers in the least developed countries (LDCs) have, at various times, attempted to make agriculture the primary engine of economic gro.....


E-commerce Concept E-commerce is a narrower part of e-business dealing with the purchase and sale of goods and services over the internet, including support activities such as marketing and customer support. The ability to made transaction for personal or professional use over the internet is kno.....

Assignment on Rostows Development Model and Bangladesh

Rostows Development model Creator: Walt Whitman Rostow 1916-2003 was an American economist who proposed his five stage model of development in the 1950’s, the ideas of which stemmed from modern free trade and Adam Smith. Rostow’s model does not deny John Maynard Keynes in that it allows for a.....

Assignment on Bangladesh Economy: The Challenges and Prospects

Bangladesh is an agricultural country. With some three-fifths of the population engaged in farming. Jute and tea are principal sources of foreign exchange. Major impediments to growth include frequent cyclones and floods, inefficient state-owned enterprises, inadequate port facilities, a rapidly .....