National income is the sum of employee compensation, proﬁts, and the following items, except
A) rent.
B) interest.
C) depreciation or consumption of ﬁxed capital.
D) taxes on production and imports.

Question

Quizplus · Accepted Answer

Depreciation or consumption of fixed capital is not included in the calculation of national income; it is a measure of the wear and tear on the economy's stock of fixed assets and is subtracted out to get net measures of production.

National Income Is the Sum of Employee Compensation, Proﬁts, and the Following