Difference/link between national PRODUCT and national INCOMEWatch
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.