Question

Define or explain the following concept:

National income

Define National Income.

Answer 1

Modern economy is a money economy. Hence. national income of a country is expressed in terms of money. The total income of the nation is called national income. In real terms, national income is the flow of goods and services produced in an economy during a year.
Prof. A.C. Pigou: "National dividend is that part of objective income of the community, including, of course, income derived from abroad which can be measured in money."