Structure of national income, Microeconomics

STRUCTURE OF NATIONAL INCOME:

The structure or composition of national income of an economy explains the relative significance of the different producing sectors in an economy. When a country is in a state of underdevelopment, primary sector (agriculture and allied occupations) makes the largest contribution to the national income. As the country grows and gets developed, the contribution of the industrial and services sectors gradually increases. Therefore, on the basis of the composition of GDP, one can easily pronounce whether a country is developed or underdeveloped. 

Let us examine what has happened in India.  In India, over the period 1951-2005, the share of the primary sector in national income has fallen by about 40 per cent while that of the secondary and tertiary sectors has increased. This trend is projected to accelerate further in wake of liberalisation of the economy. This may happen primarily because of the following factors:  

  • Reduced restrictions on involvement of private sector in areas like software development and information services;  
  • Technological advances; and 
  • Lower fixed capital requirements. 
Posted Date: 11/10/2012 3:15:39 AM | Location : United States







Related Discussions:- Structure of national income, Assignment Help, Ask Question on Structure of national income, Get Answer, Expert's Help, Structure of national income Discussions

Write discussion on Structure of national income
Your posts are moderated
Related Questions
Income and Substitution Effects A fall in price of a good has the two effects: Substitution & Income -Substitution Effect Consumers will tend to buy more of the good


Explain the graph as their is an increase in income

Example: The Value of Clean Air Air is free in sense that we do not pay to breathe it. Question: Are benefits of cleaning up air worth the costs? People pay extra to buy

Around 2007, the world copper price was $2.00 per pound and 12 million metric tons per year was the quantity transacted. A) Assume copper’s demand elasticity is -.5 and supply elas

how do minimum unit costs change with changes in fixed cost?

Given that TC=1000+10Q-0.9Q^2+0.04Q^3,,Find the rate of output Q that result in minimum Average variable cost

RECENT DEVELOPMENT OF DEMAND THEORY:  The basic theory of consumer behaviour discussed in the previous unit can be extended in many directions, and can be applied to cover opt

Pure Monopoly: Pure monopoly examined the market structure that is generally regarded as the polar opposite of perfect competition – i.e. the monopoly model. Like the perfect

what is ''Prisoner''s Dilemma'',of non-cooperative game?estion..