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Question : Which of the following is included in national income based on the expenditure method?

 

Option 1:  

Social Security benefits

Option 2: Capital investments by businesses

Option 3: Foreign aid received by the country

Option 4: Personal income taxes


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: Capital investments by businesses


Solution : The correct answer is (b) Capital investments by businesses

Capital investments by businesses, which refer to the spending on physical assets like machinery, equipment, and infrastructure, are included in the calculation of national income based on the expenditure method. These investments represent the purchase of new assets that contribute to economic production and are considered a component of total expenditure in the economy.

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