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Calculation of National Income at Market Prices is known as _________
Money income
Real income
Non-monetary income
None of these
Here’s what each option actually means:
- Money income
This is the national income measured at current market prices. It doesn't adjust for inflation or purchasing power. When you see "calculation of National Income at Market Prices," it really means we’re talking about money income.
- Real income
Now, real income adjusts for inflation—it’s national income measured at constant prices. It tells you about actual purchasing power, not just what’s on paper.
- Non-monetary income
This one is about goods and services that people get without using money—think home-grown vegetables or housework. Not included in official market price calculations.
- None of these
Well, in this case, one of the above options does actually fit.
Correct Answer: Option 1 - Money income
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