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
advantages and disadvantages

Explain about the specification of economics environments. Specification of Economic Environments: The primary step for studying an economic issue is to identify the econom

an emission fee levied against polluting firms will tend to shift the supply/demand curve of the firm/product to the left/right?

What is meant by dumping? Dumping is when a producing country dumps goods on foreign markets at a price lower than either the price on the home market or below the cost (HL: ma


a consumer consumes only two goods x and y is in eqillibrium price of x falls explain the reaction of consumer through utility analysis

Depreciation T ax Shield The decrease in corporate income taxes suitable to the deductibility of depreciation from the firm's taxable earnings.  Although depreciat

Accounting profit equals revenue minus all explicit costs, and economic. One profit is defined it should not be difficult to measure the profit of a firm for a given period. But tw


Ask questMicroeconomics Reference No.:- #Minimum 100 words accepted#