Answer: Option D
Answer: (d)
The income approach equates the total output of a nation to the total factor income received by residents or citizens of the nation.
The main types of factor income are:
Employee compensation (cost of fringe benefits, including unemployment, health, and retirement benefits);
Interest received net of interest paid;
Rental income (mainly for the use of real estate) net of expenses of landlords; and
Royalties paid for the use of intellectual property and extractable natural resources.
All remaining value-added generated by firms is called the residual or profit. If a firm has stockholders, they own the residual, some of which they receive as dividends.
Profit includes the income of the entrepreneur - the businessman who combines factor inputs to produce a good or service.