Inter 1st Year

Students can go through AP Inter 1st Year Commerce Notes 9thLesson Emerging Trends in Business will help students in revising the entire concepts quickly.

Emerging Trends in Business Class 11 Notes AP Inter 1st Year Commerce 9th Lesson

→ The term “E-Business” refers to the integration of business tools based on ICT to improve the functioning of the company.

→ E-business can be divided into the following areas

1. within the organization
2. business – to – business (B2B) dealings,
3. business – to – customer (B2C) transa-ctions.
4. customer – to – customer and
5. customer – to – business.

→ Transacting or facilitating business through Internet is called e-commerce.

→ E-Trading is also known as “online trading” or e-broking. It is used for buying and selling stocks in stock exchanges.

→ An online transaction refers to any financial or non-financial activity that takes place over the internet.

→ E Business refers to the use of an online support for the relationship building between a company and clients.

→ E – Commerce refers to transacting (or) facilitating business through Internet. E. commerce is short for “Electronic Commerce”.

→ The 21^st century businesses are opening up many opportunities for entrepreneurs to grow and also equally pose many challenges.

→ One of the biggest challenges of 21^st century businesses is Human Resources-finding the right staff, training and retaining them are concerns of the HR function.

→ E-Business refers to the integration of business tools based on ICT to improve the functioning of the company.

→ E-Business refers to the use of an online support for the relationship building between a company and clients.

→ E-Commerce refers to transacting (or) facilitating business through Internet. E-Commerce is short for “Electronic commerce.”

→ The 21st century business are opening up many opportunities for entrepreneurs to grow and also equity pose many challenges.

→ One of the biggest challanges of 21st  century business is Human Resources-finding the right staff, training and retaining them are concerns of the H.R.

Students can go through AP Inter 1st Year Commerce Notes 8th Lesson Business Finance will help students in revising the entire concepts quickly.

Business Finance Class 11 Notes AP Inter 1st Year Commerce 8th Lesson

→ The requirement of funds by a business firm to accomplish its various activities is called ‘business finance’.

→ The funds are required for purchasing fixed assets (fixed capital requirement), for running day-to-day operations (working capital requirement).

→ Various sources of funds available to a business can be classified according to three major bases,

(i) time (long, medium, and short term),
(ii) ownership (owner’s funds and borrowed funds), and
(iii) source of generation (internal sources and external sources).

→ Owner’s funds refer to the funds that are provided by the owners of an enterprise.

→ Borrowed capital, refers to the funds that are generatedthrough loans or borrowings from other individuals or institutions.

→ Internal sources of capital are those sources that are generated within the business say through ploughing back of profits.

→ External sources of capital, on the other hand are those that come from outside the business such as finance provided by suppliers, lenders, and investors.

→ Finance is considered as the life blood of any organisation. The success of an industry depends on the availability of adequate finance.

→ Business units need varying amount of fixed capital depending on various factors such as the nature of business.

→ The purpose of fixed capital for business units to purchase fixed assets like land and building, plant and machinery an4 furniture and fixtures.

→ For day-to-day operation purpose working capital is required for business units.

→ The sources of funds can be categorized using different basis viz., on the basis of the period, on the basis of the ownership and source of generation.

→ The funds classified on the basis of period are long-term finance, medium-term finance and short-term finance.

→ The funds are classified on the basis of ownership, owner’s funds and borrowed funds.

→ The funds are classified on the basis of generation- Internal sources of funds and external sources of funds.

→ Non-institutional sources of finance can be categorized into

1. Long term sources
2. Medium-term sources
3. Short-term sources

→ Long-term sources of finance are shares, debentures and retained earnings.

→ Debentures are an important instrument for raising long-term debt capital. Debenture holders are creditors of the company.

→ Equity shareholders do not get a fixed dividend but are paid on the basis of earning by the company.

→ Equity shareholders  liabilities is limited to the extent of capital contributed by them in the company.

→ Preference shares resemble debentures as they bear fixed rate of return.

→ Redeemable preference shares are those shares, the investments on which are to be paid back to their respective holders after the completion of a certain time period.

→ The Government of India, in order to provide adequate supply of credit to various sectors of the economy, has evolved a well developed structure of financial institutions in the country. IDBI, SIDBI, IFCILtd, IIBI, ICICI, TFCI, etc.

→ Finance is considered as the life blood of any organisation. The success of an industry depends on the availability of adequate finance.

→ Business units need varying amount of fixed capital depending on various factors such as the nature of business.

→ The purpose of fixed capital for business units to purchase fixed assets like land and building, plant and machinery and furniture and fixtures.

→ For day-to-day operation purpose working capital is required for business units.

→ The sources of funds can be categorized using different basis viz. On the basis of the period, on the basis of the ownership and sources of generation.

→ The funds classified on the basis of period are long-term finance, medium-term-finance and short-term finance.

→ The funds are classified on the basis of ownership, owner’s funds and borrowed funds.

→ The funds are classified on the basis of generation-internal sources of funds and external sources of funds.

Students can go through AP Inter 1st Year Commerce Notes 6th Lesson Fundamental Aspects of Joint Stock Company will help students in revising the entire concepts quickly.

Fundamental Aspects of Joint Stock Company Class 11 Notes AP Inter 1st Year Commerce 6th Lesson

→ A Joint Stock Company or simply a company is a voluntary association of individuals formed to undertake a large- scale business activity.

→ The companies that are established by a Royal Charter or special sanctions from the Royal Head of State are called Chartered Companies.

→ A company that is created by a special Act of the Parliament or the Legislature of a State is called a Statutory Company.

→ A company in which not less than 51 percent of the paid-up share capital is held by the Central Government and/ or by any State Government or State Governments is called a Government Company.

→ Joint Stock Company is one of the kind of business units.

→ It is a corporate business unit.

→ A joint stock company is commenced with minimum 7 members and maximum members are unlimited.

→ Joint stock company is also known as public limited company which is governed by Indian Companies Act, 1956.

→ The capital amount is contributed to the company by 15 members through purchase of shares. So, it is called “Share capital”.

→ The members invest their money by purchasing the shares of the company, they are known as “Share holders”.

→ The joint stock company is an artificial person created by law, it enjoys separate legal entity.

→ The liability of the members is limited.

→ Company form of organisation is divided into two types,

1. Private Limited Company
2. Public Limited Company

→ Company form of organisation is commenced with issue of prospects and formation process completed by obtaining the certificate of commencement of business.

→ Joint Stock Company is one of the kind of business units.

→ It is a corporate business unit.

→ A joint stock company is commenced with minimum 7 members and maximum members are unlimited.

→ Joint stock company is also known as public limited company which is governed by Indian Companies Act, 1956.

→ The capital amount is contributed to the company by 15 members through parchase of shares. So, it is called “share capital”.

→ The members invest their money by purchasing the shares of the company, they are known as “share holders”.

→ The joint stock company is an artificial person created by law, it enjoys separated legal entity.

→ The liability of the members is limited.

→ Company form of organisation is divided into 2 types.

1. Public limited company
2. Private limited company.

Students can go through AP Inter 1st Year Commerce Notes 7th Lesson Formation of a Joint Stock Company will help students in revising the entire concepts quickly.

Formation of a Joint Stock Company Class 11 Notes AP Inter 1st Year Commerce 7th Lesson

→ A Joint Stock Company requires a number of legal formalities to be complied with before it is brought into existence.

→ Promotion is the process of organizing and planning the finance of a business enterprise under the corporate form.

→ Company, being an artificial person, comes into existence only after its registration with the Registrar of Companies. It is the legal process through which an enterprise obtains recognition as a separate legal entity.

→ A public company cannot commence business unless the minimum subscription (Minimum amount of capital required) as stated in the prospectus is subscribed.

→ The Memorandum of Association is the constitution of the company. It is the charter of the company. It provides the foundation on which the company structure is built.

→ The rules and regulations framed for the internal management of the company, which are set out in a document are named as Articles of Association.

→ Prospectus is an invitation to the public to subscribe to the shares and debentures of a public company. This brings to the notice of the public that a new company has been formed.

→ Promotion is considered as putting an idea into practice. Creation of business is known as promotion.

→ Discovery of an idea, detailed investigation, assembling the requirements, financing proposition are the steps of promotion activities.

→ Professional promoters, accidental promoters, financial promoters, technical promoters, institutional promoters are the five types of promoters.

→ A Joint Stock Company whether private or public limited must file all the necessary documents with the registrar to obtain the Incorporation Certificate. With this certificate, the company gets a status of legal entity. A number of steps have to be taken for incorporation of a company. They are :

1. Memorandum of Association
2. Articles of Association
3. List of Directors
4. Consent letter from Directors
5. Statement of Capital
6. Statutory Declaration
   The above documents are to be submitted to the company registrar for incorporation of a company.

→ Memorandum of Association is the constitution of a company. It is the charter of the company. The contents of memorandum of association known as clauses are explained in Section-B of the Companies Act, 1956.

→ The rules and regulations framed for the internal management of the company, which are set out in a document are named as Articles of Association. It is defined in Companies Act, 1956 Section 2 (2).

→ Prospectus is an invitation to the public to subscribe to the shares and debentures of a public company. It is defined in Companies Act, 1956 Section 2 (36)

→ A public company invites the people to offer to purchase the shares and debentures through an advertisement. Such an advertisement or notice containing detailed information about the company is known as Prospectus.

→ In case a company makes any misstatements or misrepresentation in prospectus, it gives rise to impose Civil or Criminal liability on

1. The Company
2. Promoters and Directors
3. Expert who drafted the Prospectus.

→ In case a public company raises its capital privately, there is no need to issue prospectus, but a “Statement in lieu of prospectus” must be filed with the registrar at least three days before the first allotment of shares.

→Promotion is considered as putting an idea into practice creation of business is known as promotion.

→ Discovery of an idea, detailed investigation, assembling the requirements, financing proposition are the steps of promotion activities.

→ Professional promoters, accidental promoters, financial promoters, technical promoters, institutional promoters are the five types of promoters.

→ A joint stock company whether private or public limited must file all the necessary documents with the registrar to obtain the Incorporation certificate. With this certificate, the company gets a status of legal entity. A number of steps have to be taken for incorporation of a company. They are :

1. Memorandum of Association
2. Articles of Association
3. List of Directors
4. Consent letter from Directors
5. Statement of capital
6. Statutory Declaration.

The above documents are to be submitted to the company registrar for incorporation of company.

→ Memorandum of Association is the constitution of a company. It is the charter of the company. The contents of memorandum of association known as clauses are explained in section- B of the companies Act, 1956.

→ The Rules and Regulations framed for the internal management of the company, which are set out in a document are named as Articles of Association. It is defined in companies Act, 1956 Section 2(2).

→ Prospectus is an invitation to the public to subscribe to the shares and debentures of a public company. It is defined in companies Act, 1956 Section 2(36).

→ A public company invites the people to offer to purchase the shares and debentures through an advertisement. Such an advertisement or notice containing detailed information about the company is known as prospectus.

→ In case a company makes any misstatements or misrepresentation in prospectus, it gives rise to impose Civil or Criminal liability on :

• The company
• Promoters and Directors
• Expert who drafted the prospectus.

→ In a case public company raises its capital privately there is no need to issue prospectus, but a “Statement in lieu of prospectus” must be filed with the registrar atleast three days before the first allotment of shares.

Students can go through AP Inter 1st Year Economics Notes 10th Lesson Money, Banking and Inflation will help students in revising the entire concepts quickly.

Money, Banking and Inflation Class 11 Notes AP Inter 1st Year Economics Chapter 10

→ Liquidity: Liquidity is the ability of an asset to be converted into money.

→ Currency: Currency is the form in which money is circulated in the economy. It includes coins and currency notes.

→ Near Money: Highly liquid assets that are not accepted as money but can be quickly converted into money.

→ Legal Tender: Money that must be accepted by everyone as per law towards payment for commodities, services and settlement of debt is called legal tender money.

→ Token Money: Token money is the money or unit of currency whose face value is higher than its intrinsic value.

→ Credit Money: Credit money also called the bank money which is created by the commercial banks from the primary deposits.

→ Primary Deposit: It is a deposit directly received by commercial banks from the public.

→ Secondary Deposit: A secondary deposit or derived deposit is the deposit created by sanctioning a loan from out of the initial deposit or primary deposit.

→ Overdraft: This is a facility extended to the current account holders in a commercial bank, by which the account holder can draw an amount above the available balance, subject to an upper limit.

→ Call loan or Direct Loan: A type of loan given by the commercial banks. It is repayable on demand without any notice.

→ Inflation: Persistent rise in the general price level over a period of time.

→ Demand Pull Inflation: Inflation caused by excess aggregate demand over aggregate supply.

→ Cost Push Inflation: The rise in general price level caused by an increase in the production costs such as, wages and raw materials.

→ Bank Rate: The rate at which the central bank discounts the bills of commercial banks.

→ Cash Reserve Ratio: That portion of total deposits which a commercial bank has to keep with the central bank in the form of cash reserves.
→ Statutory Liquidity Ratio: That portion of total deposits which a commercial bank has to keep with itself in the form of liquid assets.

→ Open market operations: The deliberate direct sales and purchases of securities and bills in the market by the central bank.

→ Consumer Price Index: It measures price changes from the perspective of retail buyers.

→ Money is anything which is widely accepted payment for goods or in discharge at other kind of business obligation. Money came into existence to eliminate the problems lies in’the barter system.

→ Functions of money broadly Classified in two types.

1. Primary functions
2. Secondary functions

→ At present there are two types of money. They are

1. Currency
2. Demand deposits

→ Money supply includes all money in the economy. In India money supply is measured in terms of the following monetary aggregates.
M₁ = Currency + demand deposits + other deposists
M₂ = M₁ + time liability of saving deposits + Certificates of Deposits in issued by banks + term deposits.
M₃ = M₂ + term deposits over one year maturity + term borrowings of banks.

→ Banking means the accepting for the purpose of lending or investment of deposits of money from the public repayable on demand or otherwise with drawble by cheque draft or otherwise.

→ The functions of commercial banks can be divided into two types.

1. Primary functions
2. Secondary functions

→ Central bank is .the apex of the banking system in a country. It controls and regulate the activities of the banks and the country’s banking stem. Reserve Bank of India is the central bank of India.

→ Functions of central bank – note issue, Bankers to the government, Banker to bank, lender of Idst resort, controller of credit and custodian of foreign exchange reserve.

→ Inflation means to a persistant upward movement in the general price level rather than once for rise in it.

→ Depending on the cause, inflation may be in two types.

1. Demand – Pull inflaction
2. cost – Push inflation.

→ Moderate or Creping inflation has favourable effect on production when there is hyper it creates business uncertainty and adversely affects production. Fixed income groups lose from inflation. Working class also suffer worst because wages do not rise as much as the prices of commodities.

→ Money plays a significant role in the modem economic life of the human beings.

→ Money does not mean currency notes and coins alone. St includes demand deposits of the commercial banks and other deposits held by the Central Bank.

→ According to Seligman’s definition, “Money is one that possesses general acceptability”.

→ Money has many important functions to perform.

→ Money supply is a stock concept. Money supply determines the rate of interest and credit availability, investment, the levels of output, national income and employment.

→ Money is classified on the basis of its value, the material used and its legal status. Thus, there are different types of money.

→ Liquidity is the ability of an asset to be converted into money (cash).

→ Currency is the form in which money is circulated in the economy. It includes coins and paper notes.

→ Near-money refers to those highly liquid assets which are not accepted as money, but which can be quickly converted into money. E.g: Savings deposits, shares.

→ Money that must be accepted by everyone as per law towards payments for commodities and services and settlement of debt is called legal tender money.

→ Token money is the money or unit of currency whose face value is higher than its intrinsic value and which is not convertible into gold or silver on par with its face value.

→ Credit money which is also called the bank money is created by the commercial banks from out of the primary deposits.

→ Store of value is a secondary function of money. By this function money preserves the value of perishable commodities in the form of money if they are exchanged before they perish. It stores the value of durable commodities also.

→ Current account is the kind of deposit accepted by the commercial banks which allows any number of deposits and withdrawals and which facilitate transfer money through cheques by the businessmen, industrialists and government offices, it does not earn any interest.

→ Cash credit is a type of loan given by the commercial bank which facilitates withdrawal of loan amount in installments as and when necessary.

→ It is a deposit directly received by the commercial banks from the public. It is not created by a loan.

→ Secondary deposit or derived deposit is the deposit created by sanctioning a loan from out of the initial deposit or primary deposit.

→ Bills of exchange is a written document written by a buyer in favour of the seller promising to pay the price – amount on a specified future date.

→ This is a facility extended to the current account holders in a commercial bank, by which the account holder can draw an amount above the available balance, subject to an upper limit.

→ Call loan or direct loan is a type of loan given by the commercial banks. It is repayable on demand without any notice.

→ Persistent rise in the general price level over a period is called inflation.

→ Inflation caused by excess aggregate demand over the aggregate supply is called demand pull inflation.

→ The rise in the general price level caused by the increase in the production cost of a firm is called cost-push inflation.

→ Money plays a significant role in the modern economic life in human beings.

→ The term ‘Money’ was derived from the name of Goddess Juno Moneta of Rome.

→ Prior to the introduction of money, the barter system was in vogue.

→ Barter system is a system in which one good was exchanged for another good.

→ Today, Money occupies a unique place in an economic system.

→ The general accepted form of money is called currency.

→ Money has many important functions to perform.

→ Demand for money reflects why people desire a certain amount of money.

→ Money supply refers to the total amount of money circulating in an economy.

→ The money multiplier (m) is defined as the ratio of the change in the money supply to a given change in the monetary base (M₀).

→ The money supply is measured using various monetary aggregates, commonly M₀ (Money Base), M₁ (Narrow Money), M₂ (Broad Money), M₃ & M₄ (Larger time deposits).

→ Banking is a business activity in which money is collected from the public in the form of deposits, and loans are given to the businessmen, industrialists etc.

→ A bank is a financial institution that operates as a profit-making business dealing in money.

→ The RBI classified banks into

• Scheduled Banks,
• Non-scheduled Banks.

→ The process of creating secondary deposits is known as credit creation.

→ Net Banking is also known as internet or online banking.

→ All banking transactions can be performed using a smartphone through a mobile ‘app’ of the respective banks. This is very popular now.

→ Central bank is the apex of the banking system in a country. It controls, regulates and supervises the activities of the banks and the country’s banking system.

→ Demonetization is an economic process where the existing currency unit is withdrawn from circulation and replaced with new currency.

→ Inflation is one of the serious macroeconomic problem confronting all the economies in the world today.

→ The term inflation refers to a persistent rise in the general price level over a long period of time.

→ Wholesale Price Index (WPI) and Consumer Price Index (CPI) are two commonly used measures that are effective in determining the inflation in the country.

→ వినిమయ సాధనంగా అందరూ అంగీకరించేది విలువ, కొలమానంగా ఉపయోగించబడేది ద్రవ్యం అని శ్రీధర్ నిర్వచించాడు.

→ ఒక వస్తువును ఇచ్చి మరో వస్తువును వేరుగా తీసుకొనే పద్ధతిని వస్తు వినిమయ పద్ధతి లేదా వస్తు మార్పిడి పద్ధతి అంటారు.

→ ద్రవ్యం ముఖ్యంగా విలువల కొలమానం, వినిమయ మాంద్యం, విలువల నిధి, వాయిదాల చెల్లింపుల ప్రమాణం మొదలగు విధులను నిర్వహించును.

→ పూర్తి ప్రమాణాలు నాణేలు, తక్కువ ప్రమాణం నాణేలు, చిల్లర ద్రవ్యం, కాగితపు ద్రవ్యం, పరపతి ద్రవ్యం.

→ వాణిజ్య బ్యాంకులు నిర్వహించే కార్యకలాపాలు రెండు రకాలుగా విభజించవచ్చు.

• ప్రాథమిక విధులు
• అనుషంగిక విధులు

→ దేశంలోని అత్యుత్తమ బ్యాంకింగ్ వ్యవస్థకు కేంద్ర బ్యాంకు శిఖరం. అది బ్యాంకింగ్ వ్యవస్థలో బ్యాంకుల ఆర్థిక కార్యకలాపాలను పర్యవేక్షిస్తుంది, నియంత్రిస్తుంది, క్రమబద్ధీకరిస్తుంది.

→ కేంద్ర బ్యాంకు విధులు – కరెన్సీ నోట్ల జారీ, ప్రభుత్వ బ్యాంకరు, బ్యాంకుల బ్యాంకరు, అంతిమ ఋణదాత మొ||నవి.

→ రిజర్వు బ్యాంక్ ఆఫ్ ఇండియాను 1935లో నెలకొల్పారు. 1949లో జాతీయం చేశారు. నోట్ల జారీ, ప్రభుత్వ బ్యాంకరు, బ్యాంకుల బ్యాంకర్, అంతిమ ఋణదాత, పరపతి నియంత్రణ మొ||నవి.

→ ద్రవ్యోల్బణం అనేక రకాలుగా ఉంటుంది. డిమాండ్ ప్రేరిత ద్రవ్యోల్బణం, వ్యయ ప్రేరిత ద్రవ్యోల్బణం మొ||నవి. ఇవే కాకుండా ద్రవ్యోల్బణ స్థాయినిబట్టి, తీవ్రతను బట్టి ఇందులో ఇతర రకాలు కూడా ఉన్నాయి.

→ ద్రవ్యోల్బణ ప్రభావం ఉత్పత్తి మీద, పంపిణీ మీద స్థిర ఆదాయాల వర్గాల వారి మీద, శ్రామిక వర్గం మీద ఉంది.

Students can go through AP Inter 1st Year Economics Notes 5th Lesson Cost and Revenue Analysis will help students in revising the entire concepts quickly.

Cost and Revenue Analysis Class 11 Notes AP Inter 1st Year Economics 5th Lesson

→ Explicit cost: The remuneration paid to outside factors of production.

→ Implicit cost: The cost of entrepreneur’s self owned / self-employed resources.

→ Opportunity cost: The cost of forgone opportunity.

→ Fixed costs: Fixed costs are those costs that remain the same in the short period.

→ Variable costs: Variable costs are those costs that can be changed in the short period.

→ Total cost: Total cost can be obtained by adding total fixed costs and variable costs.

→ Average cost: The cost per unit of output produced.

→ Marginal cost: The additional cost to produce incurred to produce an additional unit of good.

→ Total Revenue: Total revenue is the amount earned by producer by selling total output in the market.

→ Average Revenue: Revenue per unit of output sold in the market.

→ Marginal Revenue: Additional revenue earned from the sale of an extra unit of output.

→ Cost and Revenue are the two important supply side concepts to examine the cost of production.

→ Cost analysis refer to the study of behaviour of cost in relation to one or more production criteria.

→ The cost function is as follows :
C=f(P, Q, R, S, T ……………. n)
It express the relationship between cost and output.

→ The remuneration paid to outside factors of production is called explicit costs. These are also called Accounting Costs. Eg. Wages to labourers.

→ The cost of factors owned by the entrepreneur himself and employed in his own business is called implicit costs.

→ Implicate costs are also called as “Imputed Cost”. Eg : Rent of own factory building.

→ Total Cost = Explicit Cost + Implicit Cost

→ Opportunity cost is the cost of next best alternative, sacrificed in order to obtain that commodity.

→ The money outlays of a firm in the process of production of its output, in terms of money are called money costs.

→ Costs are divided into two categories namely: i) Short run Costs and ii) Long run Costs.

→ Short run costs are divided into fixed costs and variable costs.

→ Fixed costs are costs to pay for fixed inputs. Eg.: Cost of machinery.

→ Variable costs are the costs that change with the changes in the quantity of output. Eg. Expenditure on raw materials.

→ The total expenditure that a firm incurs to employ fixed inputs is called the total fixed cost.

→ The total expenditure that a firm incurs to employ the variable inputs is called the total variable cost.

→ Average fixed cost is the fixed cost per unit of output.

→ Average variable cost is the variable cost per unit of output.

→ Average cost is the total cost per unit of output.

→ Marginal cost is defined as the change in the total cost resulting from a one unit of change in output.

→ The minimum point of Average Cost Curve is called the optimal cost.

→ The total sale proceeds of a firm is known as revenue.

→ Total amount of money or income received by the firm from the sale and a certain quantity of output is called total revenue.

→ Average revenue or receipts is the revenue per unit of the good sold. It is computed by dividing the total revenue by the number of units of goods sold.

→ In the addition to the total revenue by selling one additional unit of the good i.e., the revenue which would be earned by selling an additional unit of the good.

→ The Average Revenue Curve is called Demand Curve.

Students can go through AP Inter 1st Year Economics Notes 4th Lesson Production Analysis will help students in revising the entire concepts quickly.

Production Analysis Class 11 Notes AP Inter 1st Year Economics 4th Lesson

→ Production: Production is the process that converts inputs into output.

→ Production function: Production function shows the relationship between inputs and output produced by the firm.

→ Factors of production: Factors that help in the production process are called factors of production. For example, land, labour, capital and organization.

→ Short period: Short period is a period in which a producer is unable to change factors of production to increase output.

→ Long period: Long period is a period in which factors of production can be change by the producer to increase output.

→ Average product: Average product can be obtained by dividing total product by the number of labourers.

→ Marginal product: Marginal product is the additional product by employing an additional labour.

→ Fixed factors: Fixed factors are those factors which cannot be changed by the producer in the short period. Ex: Buildings, machinery etc.

→ Variable factors: Variable factors are those factors which can be change by the producer in the short period. Ex: Labour, raw material etc. In long run all factors are variable factors.

→ Change in scale of production: Change in all inputs in the same proportions.

→ Internal economies: Internal economies refers that when a firm expands output by increasing all inputs and gets certain advantages.

→ External economies: External economies are those economies which accrue to all firms as a result of the expansion of industry as a whole.

→ Supply: Supply is the quantity of good offered by the producer for sale at different prices during a certain period.

→ Supply function: Supply function shows the relationship between the supply and the factors of production of a good.

→ Elasticity of Supply: The responsiveness of supply due to change in its price.

→ Isoquant: The set of all possible combinations of inputs that yield the same level of output.

→ Production means creation of goods.

→ The factors which participate in production process are known as factors of production. They are

1. Land
2. Labour
3. Capital
4. Organisation.

→ Production function explains the physical relationship between inputs and outputs.

→ Short period production function also known as the law of variable proportions. It explains the changes in output when a factor of production is varied while keeping other factors constant. In this processes three stages of returns will take place.

1. Increasing returns
2. Diminishing returns
3. Negative returns.

→ Long period production function also known as the law of returns to scale. In the long period while increasing all the factors of production, how to change the output. The output varied in three ways.

1. Increasing returns to scale
2. Constant returns to scale
3. Diminishing returns to scale

→ Internal economies are those economies which are open to an individual firm when its size expands.

→ External economies are those economies which are open to all the firms or to an industry when its size expands.

→ The quantity of a commodity that a seller is prepared to sell at a particular price and at a particular time.

→ The amount of expenditure incurred by producing a commodity. There are different cost curves in short run and long run. They are fixed cost, variable cost, total cost, average cost, margin cost etc.

→ The proceeds or receipts that a firm gets from the sale of its product is called revenue. They are three types.

1. Total revenue
2. Average revenue
3. Marginal revenue

→ The term factors of production refers to all those individuals, agents, materials, machines, inputs, etc. which participate and which help in the production of various goods and services.

→ The four factors of production in Economics are land, labour, capital and organisation.

→ The physical/technical or mathematical relationship between physical quantities of inputs and physical quantities of outputs is called production function.

→ The law of variable proportions, also known as the law of diminishing returns, which applies in the short run, explains the changes in output when a factor of production, is varied or changed keeping other factors constant.

→ In the law of variable proportions, there are 3 stages of returns namely, stage of increasing returns, stage of diminishing returns and stage of negative returns.

→ The law of returns to scale, which applies in the long run, explains the changes in output when all the inputs (both fixed and variable) are changed in the long run.

→ In the law of returns to scale, there are 3 stages, namely, the stage of increasing returns to scale, the stage of constant returns to scale, the stage of diminishing returns to scale.

→ The benefits or advantages which a firm enjoys by changing its scale of production or operations from small scale to large scale are known as economies of large scale production.

→ Economies of large scale production are of 2 types, namely, a) Internal Economies and b) External Economies.

→ lnternal Economies are of 5 types, namely, Technical Economies; Managerial Economies, Marketing Economies, Financial Economies, Risk-bearing Economies.

→ External Economies of scale are of 4 types, namely, Infrastructure Economies, Specialisation Economies, Information and Marketing Economies, Research Economies.

→ The term supply refers to the quantities which a seller / business firm is willing and prepared to sell at a particular price and at a particular time.

→ various determinants of supply are price of the good, prices of related goods, prices of factors of production, state of technology, government policy, weather conditions.

→ The equation which shows the functional relationship between the determinants of supply of a good and the supply of that good is called supply function.

→ The table or schedule which shows the various quantities offered for sale at different prices is known as supply schedule.

→ The law of supply states that “other things remaining the same, the supply of a commodity extends / expands (increases) with a rise in its price and contracts (decreases) with a fall in its price.”

→ A supply curve slopes upwards from left to right, indicating that price and supply are directly related.

→ Elasticity of supply is divided into five types. They are: 1) Perfectly elastic supply (E_s = ∞), 2) Perfectly inelastic supply (E_s = 0), 3) Relatively elastic supply (E_s > 1), 4) Relatively inelastic supply (E_s < 1), 5) Unitary elasticity of supply (E_s = 1).

→ The various types of expenditure incurred by a producer / business firm to produce goods is known as production cost.

→ Money, costs, real costs, opportunity costs, explicit costs, implicit costs, fixed costs, variable costs are some of the cost concepts. Average fixed cost, average variable cost, average cost, marginal cost are some of short run cost concepts.

→ The receipts or sale proceeds received by a business firm through the sale of its goods are known as total revenue. Revenue is divided into three types. They are: 1) Total revenue, 2) Average revenue, 3) Marginal revenue.

→ The revenue received on an average by a business firm from the sale of each unit is known as average revenue. The additional or extra revenue received from the sale of an additional unit of the good is known as marginal revenue.

→ In perfect competition, average revenue and marginal revenue curves are parallel to X – axis.

→ In imperfect competition, average revenue curve and marginal revenue curves slope downwards from left to right.

→ The costs which remain fixed and which do not change with a change in output are known as fixed costs.

→ The costs which change with a change in direct proportion to a change in output or quantity produced are called variable costs.

→ Production is very important economic activity.

→ In Economics, the word production is used in a wider sense. Production defined as creation or addition of utility.

→ The term factors of production refers to all those individuals, agents, materials, machines, inputs etc., which participate and which help in the production of various goods and services.

→ The four factors of production in Economics are land, labour, capital and organisation.

→ In Economic terms Land does not mean soil or earth’s surface alone but refers to all free gifts of nature.

→ In Economics, Labour is used a wider sense. Any work whether manual or mental which is undertaken for a monetary consideration is called labour.

→ Capital is man-made and is rightly defined as “produced means of production.”

→ Increase in the stock of real capital in a country is called capital formation.

→ According to Schumpeter, the true function of an entrepreneur is to introduce innovations. Entrepreneur is the person who prepared to bear the risk.

→ The factors of production or inputs are classified in fixed and variable.

→ “Production function is the name given to the relationship between rates of inputs of productive services and the rate of output of product – Stigler.

→ ∴ Q_x =f(a, b, c, d, …………..n). It is a mathematical firm of production function.

→ ∴ Q= AK^a L^b is a Cobb-Douglas production function.

→ The short term production function of a firm is studied by the law of variable proportion. This law is also known as the Law of Diminishing Returns.

→ Abbreviations:
TP= Total Product
AP = Average Product
MP = Marginal Product

→ The law of variable proportion is very crucial concept which helps the producer to produce to an optimal level.

→ Long-run behaviour output is studied under the law of returns to scale of the law of fixed proportions.

→ Understanding the law of return’s to scale helps businesses to determine the optimal production level by identifying when to expand operations and capitalise on economics of scale.

→ Internal economies are those which are open to a single factory or a single firm independently of the action of other firms.

→ An Isoquant is the set of all possible combinations of the two inputs that yield the same maximum possible level of output.

→ Q_x= f(P_x, P_y, P_f , T,G,O)
= Supply function

→ Price elasticity of Supply = \(\frac{\text { Percentage change in quantity supplied }}{\text { Percentage change in price }}\)

= \(\frac{\Delta Q}{\Delta P} \times \frac{P}{Q}\)

→ ఉత్పత్తి అనగా ప్రయోజనాల సృష్టి.

→ ఉత్పత్తిలో పాల్గొనే కారకాలను ఉత్పత్తి కారకాలంటారు. అది నాలుగు

• భూమి.
• శ్రమ.
• మూలధనం.
• వ్యవస్థాపన.

→ భౌతిక ఉత్పత్తి సాధనాలకు, భౌతిక ఉత్పత్తికి మధ్యగల సంబంధంను ఉత్పత్తి ఫలం అంటారు.

→ స్వల్పకాలం అనగా ఉత్పత్తి ప్రక్రియలో చర సాధనాలను మాత్రమే మార్చి, ఉత్పత్తిలో మార్పులు చేపట్టగలిగే కాలపరిధి.

→ చరానుపాత సూత్రం స్వల్ప కాలానికి చెందినది. ఈ సూత్రం ప్రకారం కొన్ని ఉత్పత్తి కారకాలను స్థిరంగా ఉంచి చర ఉత్పత్తి సాధనం పరిమాణంలో మార్పు చేస్తూ ఉన్నప్పుడు ఉత్పత్తి ఏ అనుపాతంలో మారుతుందో తెలియజేస్తుంది.

→ దీర్ఘ కాలంలో అన్ని ఉత్పత్తి సాధనాలు చర అనుపాతంలో మారినపుడు ఉత్పత్తి ఏ అనుపాతంలో మార్పు చెందుతుందో తెలియజేసే దానిని తరహాననుసరించి ప్రతిఫలాలు అంటారు.

→ ఒక నిర్ణీత ధర వద్ద నిర్ణీతకాలంలో మార్కెట్లో విక్రయానికి సిద్ధంగా ఉన్న వస్తు పరిమాణాన్ని సప్లయ్ అంటారు. ఇతర పరిస్థితులు మారనంత వరకు ఒక వస్తువు ధర తగ్గితే సప్లయ్ తగ్గుతుంది. ధరపెరిగితే సప్లయ్ పెరుగుతుంది.

→ ఒక ఉత్పత్తిదారుడు ఉత్పత్తికి వెచ్చించే మొత్తాన్ని “ఉత్పత్తి వ్యయం” అంటారు. వ్యయాలు రెండు రకాలు

• సాధారణ వ్యయాలు
• ఆర్థిక వ్యయాలు.

→ ఒక సంస్థ ఉత్పత్తి చేసిన వస్తురాశిని అమ్మగా వచ్చేదే మొత్తం రాబడి. రాబడి మూడు రకాలు

• మొత్తం రాబడి
• సగటు రాబడి
• ఉపాంత రాబడి.

Students can go through AP Inter 1st Year Economics Notes 9th Lesson Theory of Employment and Public Finance will help students in revising the entire concepts quickly.

Theory of Employment and Public Finance Class 11 Notes AP Inter 1st Year Economics Chapter 9

→ Great depression: The Great Depression was a severe global economic downturn from 1929 to 1939.

→ Aggregate demand price: Aggregate de mand price refers to the amount that is expected to be spent on the total output.

→ Aggregate supply price: Aggregate supply price refers to the income the entrepre neurs in the economy that they must to receive from the sale of the total output.

→ Effective demand: Effective demand is that aggregate demand which becomes equal to the aggregate supply.

→ Marginal propensity to consume (MPC): It is the change in consumption (iNC) due to change in income (AY).
MPC = \(\frac{\Delta \mathrm{C}}{\Delta \mathrm{Y}}\)

→ Marginal propensity to save (MPS): It is the change in savings (AS) due to the change in income (AY).
MPS = \(\frac{\Delta \mathrm{S}}{\Delta \mathrm{Y}}\)

→ Average propensity to consume (APC): APC is the consumption per unit of income i.e.,
APC = \(\frac{C}{Y}\)

→ Average propensity to save (APS): APS is the savings per unit of income i.e.,
APC = \(\frac{S}{Y}\)

→ Investment multiplier: The ratio of change in income to the change in investment
k = \(\frac{\Delta \mathrm{Y}}{\Delta \mathrm{I}}\)

→ Budget: Budget is the annual statement of the estimated receipts (income) and the estimated expenditure of the government for the coming financial year (April l9t to Mairch 31st).

→ Vote on Account: Vote-on account is an interim budget presented for a few months pending presentation of the regular budget.

→ Surplus budget: Surplus budget refers to the budget in which the total receipts exceed the total expenditure.

→ Balanced budget: A balanced budget is one in which the total receipts and total expenditure are equal.

→ Budget deficit: Budget deficit is the difference between the total receipts and the total expenditure in the budget.

→ Revenue deficit: Revenue deficit is the difference between the revenue receipts and the revenue expenditure.

→ Fiscal deficit: Fiscal deficit is the budget deficit plus the market borrowings.

→ Primary deficit: Primary deficit is the fiscal deficit minus the interest payments.

→ Balance of Payments: The Balance of Payments (BOP) is a systematic record of all economic transactions between the residents of one country and the residents of the rest of the world in a year.

→ Devaluation: Devaluation is a deliberate downward adjustment in the value of a country’s currency relative to another currency, group of currencies or standard

→ Appreciation: Appreciation is an increase in a currency’s value (relative to other major currencies) due to market forces.

→ During the depression period, 1929-39, there was widespread unemployment, low output and low income.

→ Macroeconomics was found useful in formulation of public policies.

→ Macroeconomics is often called the theory of income and employment as it mainly analyses how national income and employment are determined.

→ There are three approaches to deal with the theory of employment. These are ;

• Classical Approach
• Keynesian Approach and
• Post Keynesian Approach.

→ The most important principles of classicism are personal liberty, private property and freedom of private enterprise, i.e., Laissez – faire.

→ The classical theory of employment is based on “Say’s Laws of Markets”.

→ J.B.Say, a French Economist propounded that Supply creates its own demand.

→ Keynes says that unemployment is due to inadequate aggregate demand.

→ Aggregate Demand (AD) = Consumption (C) + Investment (I).

→ The term aggregate supply refers to the total supply of all commodities produced by all entrepreneurs together in the economy at a particular level of employment.

→ Consumption expenditure + investment expenditure = Aggregate Demand.

→ Both aggregate demand and aggregate supply rise with an increase in employment.

→ Consumption function C = f(Y)
C = Consumption
Y = Income

→ If the Marginal propensity increases, consumption increases more and the aggregate demand can be increased.

→ Investment Multiplier.
K= \(\frac{\Delta Y}{\Delta I}\)

K= Multiplier: ΔY= Change in Income, ΔI = Change in Investment.

→ If all the people of the economy increase the proportion of income they save. The total value of savings in the economy will not increase, it will either decline or remain uncharged. This is known as the Paradox of Thrift.

→ Public Revenue refers to the revenue received by the government from different sources.

→ Public revenue is broadly classified into two kinds.

• Tax Revenue
• Non→tax Revenue.

→ Goods and service Tax was introduced in India on 1st July, 2017.

→ The moto of GST is one Nation one Tax, one market.

→ The expenditure incurred by the Government on various economic activities is called the public expenditure.

→ When Government expenditure, exceeds its revenue, one option it is to resort to public debt.

→ The word Budget was derived from the French word Bougette which means small leather bag.

→ FRBMA – Fiscal Responsibility and Budget Management Act, 2003.

→ A closed economy is one which is not open to international trade.

→ Balance of Trade (BoT) is a statement showing the total value of exports and imports of goods over a specific period of time.

→ The market in which national currencies are traded for one another is known as the foreign exchange market.

Students can go through AP Inter 1st Year Commerce Notes 5th Lesson Partnership will help students in revising the entire concepts quickly.

Partnership Class 11 Notes AP Inter 1st Year Commerce 5th Lesson

→ Partnership’ is an association of two or more persons who pool their financial and managerial resources and agree to carry on a business and share its profit or losses.

→ The formation of a Partnership is very easy and the capital contribution comes from the partners.

→ The partners of a firm have unlimited liability.

→ The Partnership deed defines certain rights, duties and obligations of partners and governs relations among them in the conduct of business affairs of the firm.

→ The registration of partnership firm is not compulsory. However, the disadvantages of unregistered firm make registration desirable.

→ The partnership operates according to the partnership deed and the rules and regulations laid down in the Partnership Act of 1932.

→ Partnership Business Firm is one of the business units.

→ It is a Non-corporate Business Unit.

→ Partnership firm is an outcome of an agreement between two or more persons to share profits or losses among them.

→ Partnership is established by partnership agreement among partners.

→ Partnership Agreement Registered it. is known as Partnership Deed.

→ In India partnership formed with the rules and regulations of Indian Partnership Act, 1932.

→ The partnership is a part from Limited Liability Partnership.

→ The partnership was established with minimum 2 partners, according to Indian Partnership Act, 1932.

→ According to section II of the Indian Companies Act 1956, the maximum limit of partners in case of a partnership for banking business is 10 and in case of other than banking business of partnership are 20.

→ In order to overcome the limitations of sole proprietorship concerns i.e. limited capital, limited managiral ability and extend the size of the business, the viable and feasible option is partnership form of organisation.

→ The liability of partners unlimited and there is no separate legal entity to this organisation.

→ Partnership form of organisation can be dissolved with the mutual consent of the partners.

→ Dissolution of partnership occurs due to partner giving notice in writing to other partners, expiry of the term of agreement or business, insolvency of firm or in the event of court order.

→ Partnership Business Firm is one of the business units.

→ It is a non-corporate business unit.

→ Partnership firm is an outcome of an agreement between two or more persons to share profits or losses among them.

→ Partnership is established by partnership agreement among partners.

→ Partnership Agreement Registered it is known as partnership deed.

→ In India partnership formed with the rules and regulations of Indian Partnership Act, 1932.

→ The partnership is a part from Limited Liability partnership.

→ The partnership was established with minimum 2 partners according to Indian Partnership Act, 1932.

→ According to section II of the Indian companies act, 1956, the maximum limit of partners in case of a partnership for banking business is 10 and in case of other than banking business of partnership are 20.

→ In order to over come the limitations of sole proprietorship concerns i.e. limited capital, limited managerial ability and extend the size of the business, the viable and feasiable opinion is partnership form of organisation.

→ The liability of partners unlimited and there is no separate legal entity to this organisation.

Students can go through AP Inter 1st Year Commerce Notes 4th Lesson Joint Hindu Family Business and Co-Operative Society will help students in revising the entire concepts quickly.

Joint Hindu Family Business and Co-Operative Society Class 11 Notes AP Inter 1st Year Commerce 4th Lesson

→ The Joint Hindu Family (JHF) business is a form of business organisation run by the Hindu Undivided Family (HUF), where the family members of three successive generations own the business jointly.

→ The head of the family known as ‘Karta’ manages the business. The other members are called ‘co-parceners’.

→ A cooperative society is a voluntary association of persons who work together to promote their economic interests.

→ Individuals, producers, consumers, farmers, etc., who are in need and wish to protect themselves can go for co-operatives.

→ Joint Hindu Family Business is also one of the kind of business units.

→ Joint Hindu Family Business is a form of business organisation run by Hindu Undivided Family, where in the family members of three successive generations own the business jointly.

→ The head of the family is known as ‘Karta’. He manages the business, and family.

→ In the JHF, other members are called ‘Co-parceners’. All of them have equal ownership right over the properties-of business.

→ The membership of the JHF is acquired by virtue of birth in the same family.

→ No restriction for minors to become the members of the business in JHF.

→ JHF business is governed by two laws i.e., ‘Dayabhaga’ and ‘Mitakshara’.

→ A cooperative society is formed particularly to provide services to its members and to the society in general.

→ Cooperative society enjoys perpetual succession.

→ According to the needs of the people cooperative socities are divided into different types.

→ Individuals, producers, consumers, farmers, etc. who are in need and wish to protect themselves can go for cooperatives.

Students can go through AP Inter 1st Year Commerce Notes 3rd Lesson Sole Proprietorship will help students in revising the entire concepts quickly.

Sole Proprietorship Class 11 Notes AP Inter 1st Year Commerce 3rd Lesson

→ Arrangement of ownership and management of business organisations is termed as ‘Forms of Business Organisation’.

→ Business organisations may be owned and managed by a single individual (Sole Proprietorship) or a group of individuals (Partnership) or in the form of a company (Joint Stock Company).

→ A Sole proprietorship is a form of busi-ness organisation in which a single individual introduces his own capital, skill, and intelligence in the management of its affairs and is solely responsible for the results of its operations.

→ A sole proprietor contributes and organ-ises the resources systematically and controls the activities to earn profit.

→ A business enterprise can be owned and organised in several forms. Each form of organization has its own merits and demerits.

→ Business is one of the human economic activities. Profit is consideration of business.

→ Business is an economic entity i.e., an artificial person.

→ Business units may be classified into two types.

1. Noncorporate units
2. Corporate units

→ Sole proprietorship concern is one of the noncorporate units.

→ Each and every business concern must have its own merits and demerits.

→ Sole proprietorship business is owned by only one person and controlled by a single individual.

→ The complete risk in sole proprietorship concern is borne by a sole trader.

→ The sole trade liability is unlimited liability because sole proprietorship firm has no separate legal entity.

→ The sole trader and sole proprietorship firms both were same as per law.

→ To commencement of sole proprietorship firm legal formalities are very less.

→ In sole proprietorship concerns, decisions should be taken by only one person i.e., sole trader.

Students can go through AP Inter 1st Year Economics Notes 8th Lesson National Income Accounting will help students in revising the entire concepts quickly.

National Income Accounting Class 11 Notes AP Inter 1st Year Economics 8th Lesson

→ Circular flow of income: Flow of income from firms to households and from households to firms.

→ Depreciation :The reduction in the value of fixed capital due to wear and tear or obsolecence.

→ Transfer payments: Payments made in the form of pensions, interest on government bonds, etc. (or) The payments for no return services.

→ Subsidies: A financial assistance provided by the government to reduce the price of a commodity.

→ Per capita incom e: Per capita income is the average income of an individual in a country. It can be obtained by the National Income is divided by population of country.

→ Disposable income: Disposable income is the part of personal income which is left with the individual after all payments (or) Personal taxes are excluded from personal income to arrive at disposable income.

→ National income: National income is the total value of all final goods and services produced in the economy in an year.

→ Nominal GDP: GDP measured at current market prices.

→ GDP Deflator: Ratio of nominal to real GDP. It is used to measure the level of price changes or inflation.

→ National income means the aggregate value of all final goods and services produced in the economy in one year.

→ There are different opinion about the definitions of the National income. They are classified

1. Classical
2. Neo classical
3. Modern definitions.

→ Factors determining National Income are :

1. Natural resources
2. Quality and quantity of factors of production
3. State of technology
4. Political stability.

→ Various conceptes related to the National income are :

1. G.N.P.
2. G.D.P
3. N.N.P.
4. N.I.at factor cost
5. Personal income
6. Disposable income
7. Per capita income.

→ The various components of N.I. are
a) Consumption
b) Gross domestic investment
c) Government expenditure
d) Net foreign investment (X – M)

→ There are three methods for measuring National Income, they are :
a) Output method
b) Expenditure method
c) Income method.

→ National Income describes how we can view aggregate income of the economy and the circular flow of goods, services and incomes in a simple economy.

→ The National Income data is of use to the government, e.g. for formulating its macro economics strategy; and for businessmen, e.g: for planning new investment expenditure.

→ According to Marshall, “The labour and capital of country acting on its natural resources, produce annually a certain net aggregate of commodities, material and immaterial including services of all kinds. This is the net annual income or revenue of a country.

→ Many factors influence and determine the size of National Income in a country. The factors are Natural Resources, Quality and Quantity of Factors of Production, State of Technology, Political Will and Stability, etc.

→ Different concepts of aggregate incomes suit different purposes of macro economic analysis. The various concepts are GNP, GDP, NNP, National income at Factor cost, Personal income, Disposal income and Per capita income.

→ There are five main components of National Income. They are

• Consumption – C
• Gross domestic investment – I,
• Government expenditure – G,
• Net foreign investment (x-m),
• Net income from abroad.

→ Three methods of measuring national income are output method, expenditure method and income method.

→ Cairn Cross says “National Income can be looked in any one of the three ways, as the national income measured by adding up everybody’s income by adding up everybody’s output and by adding up the value of all things that people buy and adding in their savings.

→ National Income describes how we can view aggregate income of the economy and the circular flow of goods, services and incomes in a simple economy.

→The National Income data is of use to the government, e.g. for formulating its macro economics strategy; and for businessmen, e.g: for planning new investment expenditure.

→ According to Marshall, “The labour and capital of a country acting on its natural resources, produce annually a certain net aggregate of commodities, material and immaterial including services of all kinds. This is the net annual income or revenue of a country.

→ Many factors influence and determine the size of National Income in a country. The factors are Natural Resources, Quality and Quantity of Factors of Production, State of Technology, Political Will and Stability, etc.

→ Different concepts of aggregate incomes suit different purposes of macro economic analysis. The various concepts are GNP, GDP, NNP, National income at Factor cost, Personal income, Disposal income and Per capita income.

→ There are five main components of National Income. They are

• Consumption -C,
• Gross domestic investment – I,
• Government expenditure – G,
• Net foreign investment (X-M),
• Net income from abroad.

→ Three methods of measuring national income are output method, expenditure method and income method.

→ Cairn Cross says “National Income can be looked in any one of the three ways, as the national income measured by adding up everybody’s income by adding up everybody’s output and by adding up the value of all things that people buy and adding in their savings.

→ ఒక దేశంలో ఒక సంవత్సర కాలంలో ఉత్పత్తి అయిన వస్తు సేవల మొత్తం నికర విలువ.

→ ఫిషర్ నిర్వచనం : వినియోగదారులు మానవ వనరుల నుండి లేదా భౌతిక వనరుల నుండి పొందే వస్తు సేవల సముదాయమే జాతీయాదాయం.

→ జాతీయాదాయాన్ని ప్రకృతి వనరులు, శ్రమ, మూలధనం, వ్యవస్థాపన, ఇతర కారకాలు నిర్ణయిస్తాయి.

→ స్థూల జాతీయోత్పత్తి, స్థూల దేశీయోత్పత్తి, నికర జాతీయోత్పత్తి ఉత్పత్తి కారకాల ఖరీదు దృష్ట్యా జాతీయాదాయం, వ్యష్టి ఆదాయం, వ్యయార ఆదాయం, తలసరి ఆదాయం మొదలైనవి జాతీయాదాయానికి సంబంధించిన వివిధ భావనలు.

→ వినియోగం, స్థూల దేశీయ పెట్టుబడి, ప్రభుత్వ వ్యయం, నికర దేశీయ పెట్టుబడి మొ||నవి. జాతీయాదాయంలోని వివిధ భాగాలు.

→ జాతీయాదాయ మదింపు మూడు పద్ధతుల ద్వారా లెక్కించవచ్చు.

• ఉత్పత్తి మదింపు పద్ధతి
• వ్యయాల మదింపు పద్ధతి
• ఆదాయాల మదింపు పద్ధతి.

→ ద్రవ్య రూపంలో కొన్ని వస్తువుల విలువను చెప్పలేకపోవటం, కొన్ని సంస్థలలో లెక్కలు సరిగా లేకపోవటం, ప్రభుత్వ ఖర్చులు, పన్నులు మొదలైనవాటి లెక్కల సమగ్ర సేకరణ జరగకపోవటం, మనదేశంలో వృత్తుల ప్రత్యేక్తీకరణ లేక పోవటం మొదలైన అనేక సమస్యలు ఉన్నాయి.

→ ఉత్పత్తి కారకాల మధ్య పంపిణీ సంవత్సర కాలంలో ఉత్పత్తియైన వస్తురాశిని అంచనా వేయటం, జీవన ప్రమాణ స్థాయిని తెలుసుకోవటం, వివిధ దేశాల అభివృద్ధిని గుర్తించటం, ఆర్థిక సమస్యలను గుర్తించటం, ఆర్థిక ప్రణాళికల రూపకల్పన, వినియోగ వ్యయం, పొదుపు మొదలగు అంశాల అంచనాకు జాతీయాదాయ లెక్కలు తోడ్పడతాయి.