National income is the sum of
A)wages and profits.
B)wages, interest, profits, and rent.
C)interest and rent.
D)wages, transfer payments, and tax revenues.

Question

Quizplus · Accepted Answer

National income is the sum total of incomes earned by individuals and companies in a country. This includes wages, rent, interest, and profits earned by individuals and businesses. Therefore, option B, which includes all of these components, is the correct answer. Option A only includes wages and profits, while option C only includes interest and rent. Option D includes transfer payments and tax revenues, which are not a part of national income.

National Income Is the Sum of