What is national income?
Understand the Problem
The question is asking for the definition or explanation of national income, which is a key concept in economics relating to the total income earned by a nation's residents in a specific time period.
Answer
The total monetary value of all final goods and services produced in a country during a specific period, including net receipts from abroad.
National income is the total monetary value of all final goods and services produced in a country during a specific period, typically a year. It includes the sum of all incomes earned in production and accounts for net receipts from abroad.
Answer for screen readers
National income is the total monetary value of all final goods and services produced in a country during a specific period, typically a year. It includes the sum of all incomes earned in production and accounts for net receipts from abroad.
More Information
National income is an aggregate economic measure that reflects the overall economic health of a country. It is considered a key indicator in national accounts to assess the economic activity.
Tips
A common mistake is confusing national income with the gross national product (GNP), which includes income from abroad more explicitly in certain calculations.
Sources
- National Income - Definition, Formula, Importance and Methods - vedantu.com
- National income - OECD iLibrary - oecd-ilibrary.org
