Question

What do you mean by family income? Differentiate between money income and real income. Give two examples of each.

Answer 1

family income is generally considered a primary measure of nation's financial prosperity
The real income is in terms of purchasing power while the money income is your current income

Answer 2

Family income refers to the total income all the people living in a household are earning.

Difference between Real and Money income:   Real income refers to the income which is adjusted for inflation and purchasing power whereas, money or nominal income is your current income. For example, if your salary increases by 5% over last year with the inflation of the year recorded at 3% then although your nominal income has increased by 5% but, the real income has increased only 2 %. Similarly, if today you can purchase 10 bananas with your 50$ income and a year later your income is 100$ and you still can buy 10 bananas indicates that the money income has increased but the real income has remained the same.