... it includes everything that is valued by a society. These resources are often referred to as factors of production and they are usually classified as follows: a) Land, which consists of the natural resources provided free by nature, b) Capital, which consists of the means of production that have been made by people and c) Labor, which consists of human resources. On the other hand, income is a flow concept, which is normally measured over a period of year. The flow of income can be measured at three points: a) The value of incomes received, b) The value of total expenditure and c) The value of production or output. These three measures of national income are linked in the circular flow of income. When we attempt to measure national income, we are trying to put a money value on the goods and services produced over a period of a year. In its simplest form, national income ...

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