Question 12 - What is national income?
Answer 12- National income is defined as the money value of all final goods and services produced by the normal residents of a country, whether operating within the domestic territory of the country or outside , in a year.
According to Dornbusch and Fischer, " national income is the value of final goods and services produced by domestically owned factors of production within a given period ".
The national income is expressed in monetary terms. It add together the value of all final goods and services produced in a country during a year. The output of different goods and services is valued at market prices , and the values are added together to get the national income.