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

Question

Quizplus · Accepted Answer

Compensation of employees, which includes salaries and wages, is typically the largest component of national income. It represents the total earnings of all workers in an economy. Corporate profits, proprietors' income, and net interest are also important components of national income, but they are typically smaller in size compared to compensation of employees.

The Largest Component of National Income Is