What Determines National Income

Why national income is not always as great as it should. And what can be done to make the national income bigger?. The size of a country's national income (which is more or less the same as "gross national product" or "gross domestic product", which has been discussed in the post monopoly depends on a number of things.
First, the size of national income depends on the population that determines the size of the workforce . In contrast the population depends on issues such as birth rate, mortality, and net reproduction rate is appropriately described in the text.

 Then not enough just to have a large population, the population must also be efficient. It depends on several factors, health, education, job training, energy (human) and perhaps even religious customs and attitudes. (Some historians have found an association between the Protestant Reformation and the emergence of capitalism). Good at all if a country has good natural resources. Actually, a country which God endowed with vast oil reserves in the region will inevitably have a high per capita national income by the price of oil today. But we must remember that some countries are not endowed with many natural resources have managed to overcome this difficulty. with dexterity and activities, they can still work well. Example is Japan.

National income of a country is also largely determined by its history. Developed countries like Australia has been progressing for hundreds and hundreds of years. This means that Australia has built up a huge amount of capital, buildings, machinery, equipment, roads, ports, airfields. After all they have built a good education system (well, at least, with a broad range and expensive). This means that most young people start their first job with the idea that enough about how to do it. (Imagine how difficult the situation is that the population is illiterate: it is difficult to do a proper job in order to read the instructions even if you can not).

Technical knowledge is available of course most important of the improvements in the production of the developed world in recent centuries is due to rapid advancement of technology. So is the level of political stability. Lack of political stability has hindered many countries that are vulnerable to revolution.

National income is also earned the exchange rate (terms of trade) that the price is achieved the country's exports compared with what should be paid to import. We will discuss this in the coming posts.

Finally, we must be careful to give value to the national income with respect to the money now, because as we know, the money is not constant. We must adjust to allow the exchange value of money in the price level if we want a value for the real national income.

Thus this post more or less please write your opinion in column comment.