Multiple choice

Which among the following is not taken into consideration when income method is used to measure national income?

  1. Rent

  2. Net factor income earned from abroad

  3. Gross domestic private investment

  4. Compensation of employees
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The income method calculates national income by summing factor incomes (wages, rent, interest, profit). Gross domestic private investment is a component of the expenditure method, not the income method.

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