The largest component of national income is:
A) corporate profits.
B) compensation of employees.
C) proprietors' incomes.
D) net interest.

Question

Quizplus · Accepted Answer

Compensation of employees includes wages, salaries, benefits, and other forms of payment to workers. It is typically the largest component of national income in most countries. Corporate profits, proprietors' incomes, and net interest are also important components of national income, but they are generally smaller than compensation of employees.

The Largest Component of National Income Is