Multiple choice

National income does not include

  1. income from rent

  2. pensions of retired people

  3. income of the self-employed

  4. trading profits
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

National income does not include pensions of retired people because these are transfer payments, not payments for current goods and services production. Income from rent, self-employed income, and trading profits all represent current production income.

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