Answer:
b
Step-by-step explanation:
National income is a measure of the income earned by the factors of production in producing GDP. It includes all income earned by individuals and businesses within a country's borders, including wages, salaries, profits, and interest payments. National income is calculated by subtracting indirect taxes, depreciation, and subsidies from gross domestic product (GDP).
While GDP is a measure of economic activity, national income provides insight into how that economic activity is distributed among the factors of production, such as labor and capital. It helps us understand how much of the value created by economic activity is being distributed as income to workers and investors, as opposed to being retained as profits by businesses or going to the government in the form of taxes.
Overall, national income is an important measure of economic welfare because it provides insight into how the benefits of economic activity are being distributed among the various participants in the economy. By understanding how much income is being earned by different groups, we can gain a more complete picture of how well the economy is serving the needs of its citizens.