Join Sarthaks eConnect Today - Largest Online Education Community!
0 votes
in Home Science by (76.7k points)

What do you understand by real income? Define its two types and two ways of increasing this income.

1 Answer

+1 vote
by (86.9k points)
selected by
Best answer

Real Income: is the flow of goods and services that is available for certain period of time to meet the needs of the family. It is of two types. 

Direct Real Income: is income which is received by members of the family without using money. Example are use of family assets, use of community facilities, skill of family members. 

Indirect Real Income: Income which is generated by the family members with some medium of exchange, usually money is involved. Examples are: 

i. Goods & services by paying money 

ii. Fringe benefit 

iii. Barter system 

Increasing Direct Real Income:

 i. Using skill of family members such as stitching of clothes, gardening, making pickles etc. 

ii. Study home and not taking tuitions. 

iii. Taking home made tiffin 

iv. Using carpool & public transport 

Increasing Indirect Real Income: 

i. Hire maid for services. 

ii. Buying labor saving devices. 

iii. Company’s accommodation. 

iv. Reimbursement of bills 

Related questions

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.