Q1 of 25 Page 162

Define national income.

National income is the total money value of all the goods and services produced in a country during one financial year. It includes only the economic activities that can be valued at economic prices such as production by farmers, firms in different industrial sectors, production of goods and services by government, services produced by business intermediaries (Wholesalers and retailers), banks and other financial institutions, educational institutes and professionals like doctors, teachers, lawyers, etc.


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