“In a two-sector economy, national product is equal to national income”. Comment.

In a two-sector model, the national product, in terms of money value of goods and services produced, is distributed among the productive factors.

It means, total money value of output is given to factors of production in the form of rent, wages, interest and profit for their factor services. So, national product (value of the goods and services produced) is exactly equal to national income (income generated).