Question : Which of the following is not included in the calculation of national income?
Option 1: Rental income
Option 2: Interest income
Option 3: Transfer payments
Option 4: Capital gains
Correct Answer: Capital gains
Solution : The correct answer is d) Capital gains.
Capital gains are not included in the calculation of national income. National income measures the total income earned by individuals, businesses, and other entities within a country during a specific time period.
Capital gains are the profits realized from the sale of assets, such as stocks, real estate, or artwork. They are not considered as part of national income because they are not generated through current production or economic activity.
Option 3: Capital gains
Option 4: Transfer payments
Option 3: Dividend income
Option 4: Wage income
Option 4: Sales tax
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