Question

Which of the following is Direct Income or Non-money Income?
A. Use of community facilities
B. Services of servant maid
C. Use of cash
D. Use of self-owned car
Choose the correct answer from the options given below:

• A. A, B and C only.
• B. A, B and D only.
• C. A, C and D only.
• D. B, C and D only.

Hint:

Remember the fundamental distinction: "Cash" (C) is always Money Income.
Excluding (C) from the options eliminates (A), (C), and (D), leaving only option (B) as the correct answer.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
Family income is classified into three main types:
1. Money Income: The purchasing power in cash or bank currency.
2. Real Income: The flow of goods and services available to the family, further divided into:
- Direct Income (Non-money Income): Goods and services enjoyed without spending money (e.g., using public parks, owning a house, family services).
- Indirect Income: Goods and services obtained by spending money.
3. Psychic Income: The satisfaction derived from using money and real income.

Step 2: Detailed Explanation:
Let us evaluate each item to see if it qualifies as Non-money (Direct) Income:
- A. Use of community facilities: Access to public parks, schools, roads, and libraries does not require direct out-of-pocket spending, representing Direct/Non-money Income.
- B. Services of servant maid: Once hired, their household work provides a continuous flow of services (though initial hiring involves money, the service itself is a direct utility, and in some textbook contexts, household help services are grouped under real service income).
- C. Use of cash: Cash is the definition of Money Income, so it cannot be Non-money Income.
- D. Use of self-owned car: Using an asset you already own does not require spending money on rental or transport fees, representing Direct/Non-money Income.
Since C is clearly Money Income, any option containing C must be excluded.
This leaves Option (B) (A, B, and D only) as the correct choice.

Step 3: Final Answer:
The items classified as Direct or Non-money Income are A, B and D only.