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The use of vegetables grown in the kitchen garden is an example of :

  • A.Psychic income
  • B.Direct real income
  • C.Indirect real income
  • D.Total income

Answer: B

Using vegetables from the kitchen garden is an example of direct real income.

Family income is classed as money income, real income and psychic income. Real income is the flow of goods and services available to the family. It is direct when the goods and services are obtained without spending money, such as home-grown vegetables, a family member's services or the use of an owned house, and indirect when they are obtained by exchanging money income.

Psychic income is the satisfaction derived from using goods and services, and total income is the sum of all forms, so neither names this particular case.

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