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Introduction to National Income Accounting (for UPSC CSE)
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This lesson provides the introduction of National Income Accounting. The presenter breaks the myths associated with the National Income Accounting. He begins by providing the definition of the concept and then states the uses of the same. He then explains the key measure of economic growth i.e GDP, the Gross Domestic Product which is the total market value of the company's goods & services. He furthers understanding by breaking down the definition into simpler terms & efficiently explains using day to day examples.

Ayussh Sanghi is teaching live on Unacademy Plus

Ayussh Sanghi
Passionate Educator - CSE / Other Govt Exams [Peep into my Unacademy Plus Courses & experience awesome learning.]

U
Unacademy user
sir in 5 question u have teach us that this are complimentary pairs. as those two conclusions are false and this is compl. pair also. so here either or condition justify.
Payal payal
a year ago
sry sir i read it wrongly. ur ans. is right. ty sir
The 4th factor of production - Entrepreneur(a person who sets up a business or businesses, taking on financial risks in the hope of profit.) and gets Profit.
if GDP contains foreign nationals income also y still it relevant????? in express our income?
SS
sir... all your courses are awesome but sir i have a small doubt/confusion. which topic should i do first and which topic in the last? please guide me by telling the hierarchy of the topics... thnak you
Geervani P
10 months ago
There is a separate course where he has made videos regarding the important topics on which he would be making the course on. Plus, Economy is inter-related, so in my opinion, you can start off with any topic and then choose the next. You would still be able to understand everything because Ayussh sir tries to cover all the aspects. I don't come from an Economy background and therefore I find his courses to be very helpful. Make sure you cover everything
sir, then what is the difference between capital goods and intermediate goods? is capital good included in the GDP?
i have a doubt. Are factors of production like capital labour land included when determining the gdp? or only the final goods
obviously the final good is going to carry the costs of factors of production.So why need to determine seperately?
  1. Introduction to National Income Accounting BY AYUSSH SANGHI Part 1.1


  2. ABOUT ME Passionate about Teaching Passionate about >Taught at most reputed Civil Services Institutes >CA, Lawyer Follow me on: https://unacademy.in/user/ AyusshSanghi


  3. Introduction National income expresses the current achievements of an economy in monetary terms. These achievements are expressed in terms of all the goods and services that the economy produces during the course of one financial year.


  4. Introduction National Income is used: as a measure of economic growth & reflects the productive power of an economy to turn out goods reflects the productive power of an economy to turr and services for the satisfaction of human wants.


  5. Popular Measure of Economic Growth The key measure of Economic growth used by all the countries around the world is Gross Domestic Product (GDP)


  6. What is GDP? GDP is the total market value of a country's output. . It is the market value of all final goods and services produced within a financial year by factors of production located within a country, irrespective of ownership.


  7. Explanation of Definition Final Goods/ Services Final goods/ services are produced for absolute final use. Many goods produced in the economy are not classified as final goods but instead as intermediate goods. Intermediate goods are produced by one firm for use, in further processing by another firm Example: Tyres/ Seat Covers/ Engine/ Glass sold to automobile industry Many soods produced in the econoy are not casied s final


  8. Explanation of Definition Type of Final Goods . Capital goods: Those goods produced by the economic system that are used as inputs to produce other goods. Capital goods thus vield valuable productive services over time. Example 1: Machinerv. It is used to produce other goods. . Example 2: Built road is a capital good. Once it is built, we can drive on it or transport goods and services over it for many years to come.


  9. Explanation of Definition Type of Final Goods Coas cnsm Coent consumption are known Example 1: Perishable commodities like food items which have to be consumed in a short span of time as they will deteriorate irn quality. as consumer goods. . Example 2: Clothing, Toys etc.


  10. Explanation of Definition New Goods to be Produced GDP ignores all transactions in which goods are exchanged for money but in which no new goods and services are produced. Example - Sale of securities are not counted in GDP. These exchanges are transfers of ownership of assets and do not correspond to current production .But fees paid to the broker for selling of stocks is counted in GDP as the broker is performing a service.