What does national income measure?

Question

Quizplus · Accepted Answer

National income measures the total earnings of all the factors of production, including wages, salaries, profits, and rent. It is a measure of the overall economic activity in the country.

Note: Option A is incorrect because it refers to the Real GDP, which is adjusted for inflation. Option B is incorrect because it only includes the after-tax income of suppliers, not all factors of production. Option D is also incorrect because it only includes tax revenue, not the overall economic activity of a country.

What Does National Income Measure