The Methods of Measuring National Income

National Income National income is the sum of the monetary value of the net inflow of all goods and services produced by a regular resident in a country during the opening of an account. According to the Central Statistics Organization (CSO), "National income is the sum of factor income earned by the country's normal residents in the form of wages, interests, and earnings for a certain year." Domestic products, throughout the year It flows from domestic production system. Net production of goods and services in the hands of consumers, or net increase in domestic capital goods.

According to the Income Act, national income is estimated by summarizing the income of all individuals in the country. Correspondingly, national income is measured by totaling land rent, wages, wages and wages - capital profit, corporate earnings - so the income method approaches national income from distributors. Therefore, this approach attempts to measure national income at the allocation stage and is represented as paid and / or collected earnings. Individuals in this country

In the field of macroeconomics, the "income", "expenditure" and "product (production)" of the country are important terms for analyzing and understanding national economic activities. The national income account is used to measure the amount of income, expenditure, output produced by the economic activities of the country. Essentially, national income is the estimated amount of flows over time of goods and services. The key to this project is GDP. Gross domestic product (GDP) can be obtained using "income method", "expenditure law" or "production method". GDP represents the value of all end products produced in the economy and measures whether the government will help to track the economic situation. Despite its practicality, the accuracy of these methods is limited in showing living standards.

One indicator of national development level is the Human Development Index (HDI), a statistical measure developed by the United Nations to measure national development level. Normally, national income or gross domestic product (GDP) is used alone to measure the economic prosperity of that country. Although HDI considers these factors, it also considers how income is being invested in medical, educational, and other infrastructure. Therefore, HDI is often used to predict national development trends. United Nations Human Development Index (HDI) 2011 ranking: Human Development Index (HDI) measures the extent to which country wealth is invested in regional services such as education and infrastructure. Countries with low HDI tend to fall into the domestic cycle of poverty - they rarely invest in wealth, but the lack of investment lasts their poverty. The map shows different human development indices all over the world