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    What's the distinction between them?

    (Original post by BrownieLover)
    What's the distinction between them?
    The total value of production generated by the resources that belongs only to the citizens of a country is called national output or national product. What's important is whether the production was done by a local or a foreigner.

    National Product = Domestic Production-Net Foreign Factor Income(Foreign receipts-Payment to foreign factors)

    There are 2 methods to calculate national income,
    1)Calculating national Income from production method.
    2)Calculating national income from income method.

    National income of a country depends on national product. National product is the factor which generates national income. In other words, Net National Product(@ Factor Cost)=National Income.

    Hope this would help you.
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Updated: May 17, 2016
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