What is the mean income calculated from?

The mean income is determined by taking the total income of all individuals in a given population and dividing it by the number of income recipients. This approach provides a simple average that represents the overall income level within that group. It effectively summarizes the income distribution by giving a singular figure that can indicate economic health and allow for comparisons over time or between different areas.

The computation is critical because it provides insights into the average earnings and can help evaluate standards of living, inform economic policy, and measure inequalities in income distribution. In contrast, the other choices either address different economic measures, such as national wealth or GDP, or focus on specific subsets of the population, which do not reflect the overall mean income calculation.