Question

What is National income?

Options

• Add wages, rent, interest, and profit.

• Spending on final goods and services.

• Money value of final goods and services produced by the normal residents of a country during an accounting year.

• Income generation for factors of production.

Answer 1

National income is the money value of final goods and services produced by the normal residents of a country during an accounting year. It relates to production during one accounting year.