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Question : Which of the following is not a component of national income?

 

Option 1: Compensation of employees

Option 2: Operating surplus

Option 3: Taxes on production and imports

Option 4: Subsidies


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 15th Jan, 2024

Correct Answer: Subsidies


Solution : The correct answer is d) Subsidies.

In the calculation of national income, subsidies are not considered as a component of national income. National income measures the total income generated by the production of goods and services within a country's borders over a specific period.

However, subsidies, which are financial assistance provided by the government to individuals, businesses, or sectors, are not considered as part of national income. Subsidies are transfers from the government to support specific activities or sectors and do not represent income generated through production.

 

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