Question : Which of the following is not included in the calculation of national income?
Option 1: Rental income
Option 2: Interest income
Option 3: Capital gains
Option 4: Wage income
Correct Answer: Capital gains
Solution : The correct answer is c) Capital gains.
Capital gains are not included in the calculation of national income. National income measures the total income earned by individuals and entities within a country's borders during a specific time period. It includes various components of income, but capital gains, which are the profits from the sale of assets such as stocks, bonds, or real estate, are not counted as part of national income.
Option 4: Sales tax
Option 4: Transfer payments
Option 4: Sales revenue earned by a firm
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