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2.8. National Income (NI)

The National income is a measure of the sum of all factor incomes earned by the citizens of a country for their land, labor, capital, and entrepreneurial talent, whether within the country or abroad. It is equal to the Net National Product (NNP) at Factor Cost. It is obtained, as explained above, by deducting Net Indirect Tax from NNP at Market Price.

 

National Income at Factor Cost = NNP at Market Price – Indirect Taxes + Subsidies