The national income of a country for a given period is equal to the

1. total value of goods and services produced by the nationals
2. sum of total consumption and investment expenditure
3. sum of personal income of all individuals
4. money value of final goods and services produced

Explanation

Option (d) is correct

• National income represents the total monetary value of final goods and services produced within a country during a given period. It avoids double-counting by including only final goods and services, not intermediate ones.
• Option (a) is incorrect as it refers to output produced by nationals, which aligns more with the concept of GNP rather than national income in this context. Option (b) is also incorrect because it represents the expenditure method but is incomplete, as it excludes components like government expenditure and net exports. Option (c) is incorrect because personal income is derived from national income after adjustments for taxes and transfer payments, and thus is not equivalent to national income.

Answer: (d) money value of final goods and services produced; Difficulty Level: Easy