The part of the total national income of the country that goes to the government is known as:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → public income
National income goes either to the private sector (firms and households) or to the government. The part that goes to the government is public income.
Private income is the share of firms and households. Personal income and personal disposable income are parts of private income that reach households.
NCERT (2026-27): “Redistribution Function of Government Budget From chapter two we know that the total national income of the country goes to either the private sector, that is, firms and households (known as private income) or the government (known as public income). Out of private income, what finally reaches the households is known as personal income and the amount that can be spent is the personal disposable income. …” |