Question

Define the following concepts ‘Personal Income’.

What is personal income?

Answer 1

Personal income represents the actual income received by households from all sources, including wages, salaries, and transfer payments.

Answer 2

• Personal income is the income actually received by persons from all sources in the form of factor incomes and the current transfer payments during a year.
• It is less than the income which has been earned during the year because a part of the income which people have earned may not be available to them due to undistributed profits and corporate profit tax.