Question : Which of the following is not included in the calculation of national income?
Option 1: Wages and salaries
Option 2: Operating surplus
Option 3: Rental income
Option 4: Transfer payments
Correct Answer: Transfer payments
Solution : The correct answer is d) Transfer payments.
Transfer payments 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 transfer payments, which are payments made without any corresponding production of goods or services, are not considered part of national income.
Option 1: Rental income
Option 2: Interest income
Option 3: Capital gains
Option 3: Dividend income
Option 1: Wages paid to workers
Option 2: Rental income
Option 3: Interest income
Option 4: Profits earned by foreign firms in the country
Option 4: Wage income
Option 2: Dividend income
Option 4: Payments for goods and services in the underground economy
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