Advice 1: How to calculate national income

National income represents the annual value of produced goods and rendered services. It is characterized by the value of that added production in a given year to the welfare of society.
How to calculate national income
Instruction
1
Before to proceed to the calculation of national income, you should know that the total income of the country depends not only on the results of internal production activities, but also from income received from abroad and paid abroad. The sum of primary incomes defined on the basis of gross domestic product, represents the amount of goods and services produced by residents, differs from the income received in this country. This difference will be the balance of primary incomes transferred abroad and obtained for her. The total volume of primary income, account for this difference would be the gross national income.
2
Gross national income can be calculated by the following formula:
GNI = GDP + PL + SOT + DC + N + SC, where
GDP – gross domestic product;
PD - balance of primary incomes receivable by residents from abroad and paid to non-residents.
SOT - balance of remuneration received by residents from abroad and paid to non-residents.
DC - balance of property income received by residents from abroad and paid to non-residents.
N - the balance of taxes on production received by residents from abroad and paid to non-residents.
SC - balance subsidies on production received by residents from abroad and paid to non-residents.
3
Net national income is defined as the difference between gross national income and value of consumption of fixed capital, i.e. depreciation.
4
In addition, there is the gross disposable national income. It is the sum of gross national income and balance transfers from non-residents and devotees abroad. Under the transfers refers to the amount of gratuitous transfers (gifts, donations, humanitarian aid).
5
Net national disposable income is the difference between gross national disposable income consumption of fixed capital. This indicator shows the amount of income that the residents may use for consumer spending or savings.

Advice 2 : How to calculate personal income

Personal income implies a certain monetary income of employed person consists of salary and supplementary funds. In particular, it includes: dividends, rent, premiums, interest and transfers. It is calculated before taxes.
How to calculate personal income
Instruction
1
Personal income is always different from the nation that is the cumulative profit received by the owners of the funds or other economic resources. To calculate your personal income needs: subtract from the national income all funds that do not accrue to the households, that is, are part of the collective income, and then add a value that increases their income, but it is not included in national income.
2
Define personal income according to the following formula: personal income = net national income – taxes paid on corporate profits – the size of social insurance contributions – the value of the undistributed profit of the enterprises the interest on existing government bonds + transfers.
3
Can calculate personal income, using other formulas. Thus, personal income = national income – corporate profits - contributions spent on social insurance + dividends + interest on existing government bonds + transfers.
4
In addition, there is personal disposable income, which is a type of aggregate income. It is used in a household. In this case the income is less personal income on the amount of individual taxes paid by the owners of economic resources in the form of direct (income) tax amounts.
5
In turn, households spend their own disposable income on savings and consumption. In this case, disposable personal income is equal to the sum of savings and consumption.
6
The savings can be of different types. Personal savings or household savings can be calculated as the difference between personal disposable income and the cost spent on private consumption. Savings business include: retained earnings and depreciation, the company, which are defined by internal sources of Finance, as well as the basis for a better functioning of the company.
Is the advice useful?
Search