Question
Which one of the following is not included while estimating national income through income method?
Answer: Option A
Answer: (a)
The income approach equates the total output of a nation to the total factor income received by residents or citizens of the nation. Transfer incomes are excluded from national income.
Therefore, wages of labourers will be included, pensions of retired workers will be excluded from national income.
Labour income includes compensations in kind. Non-labour income includes dividends, undistributed profits of corporations before taxes, interest, rent, royalties, profits of non-incorporated enterprises and of government enterprises.
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Answer: (a)
The income approach equates the total output of a nation to the total factor income received by residents or citizens of the nation. Transfer incomes are excluded from national income.
Therefore, wages of labourers will be included, pensions of retired workers will be excluded from national income.
Labour income includes compensations in kind. Non-labour income includes dividends, undistributed profits of corporations before taxes, interest, rent, royalties, profits of non-incorporated enterprises and of government enterprises.
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