Question

Define the national income according to classical economists.

Answer 1

According to Marshall, “The labour and capital of a country acting on its natural resources produce annually a certain net aggregate of commodities, material and immaterial, including services of all kinds. This is the true net annual income or revenue of the country or national dividend.”

Answer 2

According to Pigou, “National income is. that part of the objective income of the community, including, of course, income derived from abroad, which can be measured in money.”