Question

If four groups of people in a country have individual incomes of Rs 4000, Rs 5000, Rs 6000 and Rs 7000. What would be the average national income?

• A. Rs 4500
• B. Rs 5000
• C. Rs 5500
• D. Rs 6000

Answer 1

The correct option is C Rs 5500

National Income is the total amount of goods and services produced within the nation during the given period say, 1 year. It is the total of factor income i.e. wages, interest, rent, profit, received by factors of production i.e. labor, capital, land, and entrepreneurship of a nation.

Average income = Total Income/ Total number of persons
= (4000+5000+6000+7000)/4

= 5500