Explain two basic concept of National Income.

The two Components of National Income are:

a. Gross Domestic Product is the value of all goods (car, food-grains, electronics etc.) and services (doctors, engineers, CA etc.) produced within the boundaries of an economy in a particular time period, generally a year. It includes depreciation

b. Net National Product is arrived at by after deducting depreciation from the Gross National Product (GNP). It is done to account for normal usage and resulting wear and tear in the national assets. (GNP- Depreciation)