2. The main part.

2.1. The national income of the society. The concept of national income.

The national income of the society. The concept of national income.

National income - the total income earned by resource suppliers for their contribution to the production, the sum of all individual income: wages, commissions, bonuses and other forms of income wage earners, (before deduction of taxes and social security contributions), net rental income, interest rate, corporate profits, etc., equal to net national product minus indirect business taxes.

As an economic category of the national income expresses the production relations between people, classes on the production, distribution, consumption and use of necessary and surplus product. In order to better examine the national income necessary to begin to clearly define what actually is it a source. It would seem that the basic answer to this question appears human labor, aimed at the production of wealth. However, it should be noted that with the development of mankind there was a large number of jobs, the result of work which appears not a tangible product, and improving the welfare of citizens by raising their cultural level, or to protect themselves or their interests, etc. This profession also aim to improve human existence and the more increases the security of citizens, the further advances in the science of studying the world around us and the people in general, the more the need to expand the structures providing non-material benefits people, improving the quality and increasing the range of services provided. The discussion about the sources of national income has been going on for centuries. If you look deeper into the story, we note that:

- Mercantilists (from Italian. Mercante - trade), representatives of the first school of political economy, believed that national income is created only in the field of trade.

- The Physiocrats believed that source agriculture.

In the later period, based on the classical political economy of Adam Smith and David Ricardo, significant insight into the sources of national income, the basis of ND was a material aspect of production, including both agriculture and industry. However, ignoring the distinction between productive and nonproductive consumption, they believed that the value of the gross national product confined only to income and does not include the cost of the product transferred to the means of production used.

National income is equal to gross national product minus depreciation (depreciation) and indirect taxes. On the other hand, the national income is defined as the sum of all income for the year in the form of wages, industrial and commercial profit, interest on capital and land rent.

It is based on the vision, the subjectivist methodological approach.

Other views are held by Marx in his "Capital" and other works, he repeatedly refers to the problem of national income, which he expressed as follows: "... The annual production should include all those things ... at the expense of which may be substituted with real components of capital expended during year. If you subtract this part, the product will remain clean ... " and in support of his concept, he proposed a general formula of the total social product, which in the modern interpretation is as follows:

W = c + v + m

where c - part of the social product which is worn on the update of means of production and in its natural content is a means and objects of labor (replacement fund);

v - required amount of product;

m - surplus products.

It follows that the national income is the sum of (v + m) the cost of required and optional products. In addition, despite the fact that at that period of time characterized by a low level of development of the service industry, expressing the views of progressive economists, it is fully added this field to the main sources of national income, while the subjectivist included only the part of the services that are directly related to the material production.

National income - calculated in monetary terms, the value of the newly created country within a year of the total product, which represents income generated by all factors of production (land, labor, capital, entrepreneurship). National income is equal to gross national product minus depreciation (depreciation) and indirect taxes. On the other hand, the national income can be defined as the sum of all income for the year in the form of wages, industrial and commercial profit, interest on capital and land rent. National income is one of the most important general indicators of economic development.

National income (NI) shows how many costs to society in terms of resource consumption of the production of the final product.

The only component of net national product (NNP), which does not reflect the current contribution of economic resources are indirect business taxes because taxes in exchange for the government does not invest directly in production. In this case, the State can not be regarded as a provider of economic resources (factors of production). Thus, to determine the amount of total wages, rent payments, interest and profits generated during the production of the gross national product (GNP) of a given year must be subtracted from NNP indirect business taxes:

NA = NNP - Indirect taxes on business.

National income is equal to gross national product minus depreciation (depreciation) and indirect taxes. On the other hand, the national income is defined as the sum of all income for the year in the form of wages, industrial and commercial profit, interest on capital and land rent.

National income is one of the most important general indicators of economic development strany. National income workers created the sphere of material production and is the product of the national income.

Use national income is defined as the sum of consumption and accumulation funds, it is less of national income in the amount of losses in the economy, as well as the balance of foreign trade.

Divided by kind of consumer goods and the means of production, which are derived from the expansion of production. At a cost of national income is divided into the cost of the product and the required value of the surplus product. Its growth depends on two main factors: increasing the amount of labor in production, ie, the growth of the number of production workers and labor productivity growth. National income is calculated at current prices each year, and to study its dynamics using comparable prices.

The principles of calculation and included in national accounts national income are different in different countries. In addition, the statistical agencies of the United Nations to develop a standard system of national accounts and the method of their construction, in principle, provides comparable data on national income of countries using this system.

In economic theory and statistics of foreign countries (in our country, such a system is only beginning to be applied) to characterize the outcome of the annual production figures are used, calculated on the basis of a system of national accounts. Standard System of National Accounts, developed by the UN Statistical Commission, applies in the world with the 1953 System of National Accounts (SNA) is a set of economic balance tables on the one hand, the cost of business entities for the purchase of goods, on the other - their incomes the results of economic activities. The system is based consolidated accounts of the gross domestic product, investment,

household income and expenditure, and government agencies, foreign trade operations. In addition, the SNA includes the balance sheet, or decipher the aggregates of independent significance. National accounts help you organize information on business operations, performing the role of the national economy, a similar system of accounts in the enterprise. In calculating the macroeconomic indicators based on the SNA does not differentiate between material and non-material production. Therefore, they take into account all paid for goods and services. The only types of production are not counted in the SNA are: production of goods and services by households for domestic consumption and the production of intermediate consumption within the sphere of business.

SNA is calculated on the basis of the following macroeconomic indicators:

1. Gross national product, which is the market value of all final goods produced in the country during the year.

2. The gross domestic product. This figure is a kind of modification of the GNP, but unlike the latter covers the results of activities in the territory of the country of all economic entities, regardless of their nationality.

3. Net domestic product is the sum of final products and services, the remainder for consumption after replacing the equipment described. It is less than the sum of GNP depreciation.

4. National income characterizes the income of all the suppliers of inputs, which is created by chip.

5. Personal income measures how much money goes to the purpose of personal consumption of the population, and as such reflects the redistributive processes in movement of national income .

6. To characterize the income that people can spend on your own, using indicators such as disposable income. For its calculation of personal income deducted total taxes paid by the public.

7. To measure the final results of the country's development in the history of its existence, using indicators such as national wealth. National wealth - this is a collection of material wealth, which is saved in the country at a given time.

National income characterizes the income of all the suppliers of inputs to help create NNP (Net National Product). The only component of the NNP, which does not reflect the contribution of the current economic resources are indirect business taxes. Therefore the value of the latter in national income is deducted from the amount of money NNP.  National income is the net 'wages and income "of society (wages, income, profits).  A distinction is produced and used national income.  The national income is the entire amount of value added goods and services.  Used national income - is the national income, net of losses (losses from the disaster, damage, etc.), and the trade balance.  Consumption fund - is part of the national income to provide for the material and cultural needs of the people and the needs of society as a whole (on education, defense, etc.).  Accumulation Fund - is part of the national income, to ensure the development of production.  In developed countries, the consumption fund - 90% of the national income accumulation fund - 10%.