Q.Define National Income.

National income is the money value of all final goods and services produced by a country's normal residents in a year — measured as Net National Product at factor cost.

In the Tamil Nadu HSC Class-12 Economics syllabus (National Income), national income is defined as the total money value of all final goods and services produced by the normal residents of a country during an accounting year (usually one year). Key points:

• It counts only final goods and services, to avoid double counting of intermediate goods.
• It includes net factor income earned from abroad by normal residents.
• In precise terms it equals Net National Product at factor cost (NNP at FC) — output valued at the incomes (rent, wages, interest, profit) actually received by the factors of production. …