POWER POINT LESSON S S 3 ECONOMICS NATIONAL INCOME. NATIONAL INCOME CAN BE DEFINED AS THE TOTAL MONETARY VALUE OF GOODS AND SERVICES PRODUCED IN A GIVEN ECONOMY OVER A PERIOD OF TIME USUALLY A YEAR. COMPONENTES OF NATIONAL INCOME THE COMPONENT OF NATIONAL INCOME IS MADE OF THE HOUSEHOLDS PRODUCTS, THE FIRMS PRODUCT AND THE GOVERNMENTS PRODUCTS

COMPONENTS OF NATIONAL INCOME(CONTD) HOUSEHOLDS’ PRODUCTS: THESE ARE THE OUTPUT S OF PRODUCTION ACTIVITIES OF INDIVIDUAL S AND FAMILIES WITHIN A GIVEN ECONOMY IN ONE YEAR FIRMS’ PRODUCTS: THESE ARE THE ECONOMIC OF VARIOUS FIRMS OR INDUSTRIES EITHER SMALL, MEDIUM OR LARGE SCALES IN A GIVEN ECONOMY IN ONE YEAR GOVERNMENTS’ PRODUCTS: THESE ARE THE MONETARY VALUES OF ALL GOVERNMENT’S ECONOMIC ACTIVITIES INCLUDING LOCAL, STATE AND FEDERAL GOVERNMENTS THAT ARE CONTRIBUTED INTO THE NATIONAL INCOME IN AN ECONOMIC YEAR.

SOME TERMINOLOGIES IN NATIONAL INCOME DISPOSABLE INCOME:THIS IS THE INCOME OR AMOUNT OF MONEY THAT IS LEFT TO AN INDIVIDUAL FOR SPENDING AND SAVINGS AFTER THE DEDUCTION OF PERSONAL INCOME TAXES PERSONAL INCOME: THIS IS THE MONEY THAT GETS TO PEOPLE’S POCKET. IT IS NATIONAL INCOME – BUSINESS INCOME TAXES, UNDISTRIBUTED PROFITS AND SOCIAL INSURANCE CONTRIBUTION

Depreciation : the term used to describe the gradual loss or wear and tear in the value of fixed assets which are used to generate the national income eg machineries wages : these are variable costs paid hourly, daily or weekly for a definite amount of work done salaries: salaries are fixed costs paid monthly or yearly for a work done. Money income: this is the money received for a work done. It is also known as nominal income eg 5000 naira a worker received per month is his money income. Real income : this is made up of goods and services which money income can buy. Cost of living: this means what will cost an average family to maintain itself with the basic necessities of life Standard of living: this is the extend to which individuals or families can satisfy their wants Per capita income: this is abtained as the national income divided by the population Assignment: Explain the four concepts of national income

SCHEME OF WORK FOR FIRST TERM 1.The concept of national income 2.international trade and balance of payment. 3.economic Integration. 4.petroleum and the Nigerian economy. 5.economic growth and economic development.