Question

Personal income

Select one:

A. is always greater than national income. B. is always less than national income. C. will always equal national income. D. may be greater than or less than national income.

Answer 1

In simple terms national income is a broader concept

It includes generally the payment of individuals from various sources like wages and salaries and other income sources plus the payment to the government plus returned income from the corporates minus government schemes like government subsidies, consumer interest etc

Personal income on the other hand is the National level of income to persons and the nonprofit corporates

It generally includes the payment of individuals plus transfer payment from the government like Medicare, medicaid minus employee social insurance contribution

On a general basis they are almost equal

It means sometime personal income is greater and sometime national income is greater

So the correct answer is option d