Structure of national income, Microeconomics


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

Let Consider the following insurance market. There are two states of the world, B and G , and two types of consumers, H and L, who have probabilities p H =0.5 and p L

Wage Labour: A form of work in that employees perform labour for others, under their direction, in return for salaries orwages. Employer controls and owns the product of the labour

economic problems are faced by all types of economies but they are dealt with differently in different types of economies.discuss

When Alex's income increased from $3,000 to $5,000, he increased his consumption of bagels from 4 to 8 a month and decreased his consumption of donuts from 12 to 6 a month. Calcula

what is the theory of second best ? prove the theorem with the help of a diagram ?

Direct Marketing This is a marketing tool designed to elicit instant action from the customer through direct contact.

Consider the model of corruption explored by Shleifer and Vishni's where there is one government-produced good X. There is a demand for that good described by the inverse demand eq

assingnment on production cost

What is meant by minimum wage?  The minimum wage is the minimum rate a worker can legally be paid (usually per hour) as opposed to wages that are examined by the forces of sup