Hello children welcome to the world of economics through a very interesting lesson sources of income My dear children through this lesson we all shall come to know the different ways by which you can on income when you grow up so here we go the first line in the lesson is rather interesting it says the human wants our unlimited and they go on increasing what are wants wants our desires we all aspire for the latest car the latest clothes yes but it requires money to fulfil human once so an individual has to earn income what do you mean by income income is the money received for regular work now let us understand what is personal income My dear children this question carries two marks so what is personal income personal income is the sum total of our earnings received by a person during a given period of time let us understand what is the sum total of our earnings through an example the example here is that of mr. John mr. John has a personal income which he gets during the year 2014 let us find out mr. Jones sum total of earnings to derive his personal income mr. John earns income from different sources like number one he earns from the profit from his self on business the profit  comes to the tool of rupees two crore  wow that’s awesome right mr. John also has another source of income and this time it comes from the rent and from his property the income through his rent comes through the tool of rupees 10 lakh Wow and he also has the third source of income and this time it is the interest from his savings which comes to rupees 5 lakh let us head up all the different sources of John’s income and the total comes to yes it comes to rupees 2,15,00,000 Wow mr. John is an extraordinary person he’s a super rich man right well this is John’s sum total of earnings which is known as is personal income for the year 2014 My dear children so let us sum up the definition of personal income it is the sum total of our earnings received by a person during a given period of time a person receives income for his contribution to the production let us understand what this statement means production your means the production of goods and services let us take the example of mr. john and understand how did mr. John contribute to production he provides the services to his government making business now when you provide a service to your business in return you are going to be rewarded with profits right so this is the way by which john contributed to the production of goods and services similarly my dear children that are different factors of production what do you mean by factors. factors are anything that helps in production there are four factors of production which are required for the production of goods and services and they are as follows number one it is land number two it is labor number three it is capital and number four what you require is an enterprise so let us understand how can the factors of production on income well if I am the owner of this land I earn rent that is how i contribute in the factor of production second these people you have a job in an office so they’re earn salary or wages this is that another way by which factors of production on third our bank gives lone and so the bank earns  interest from the loan given to the people and the fourth factor of production which can on is through Enterprise this gentle manner is saying i own this enterprise I’m an entrepreneur and I on profit well my dear children I hope you understood what is income what is personal income and what are the different factors of production which helping earning  personal income in our next module we shall study the different sources of income through the urban areas and rural areas.