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: Net exports
Correct Answer: Taxes on production and imports
Solution : The correct answer is c) Taxes on production and imports.
The components of national income, which are used to calculate Gross Domestic Product (GDP)
Taxes on production and imports are not considered a component of national income. Taxes on production and imports, such as sales taxes or value-added taxes, are treated as part of the cost of production or consumption and are not included as a separate component of national income.
Option 4: Subsidies
Question : Which of the following is NOT a component of national income?
Option 3: Indirect taxes
Option 4: Net factor income from abroad
Question : Which of the following is correct?
Option 1: Operating surplus = Compensation of employees + profit + interest.
Option 2: Operating surplus = Compensation of employees + rent+ interest.
Option 3: Operating surplus = Rent and royalty + profit + interest.
Option 4: Operating surplus = Compensation of employees + profit + mixed income.
Question : In national income accounting, net exports refer to ______.
Option 1: exports minus imports
Option 2: imports minus exports
Option 3: exports plus imports
Option 4: imports plus exports
Question : The components of income method includes-
Option 3: Mixed income
Option 4: All of the above.
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