National income of a country is based on ?
Correct answer: B. The sum of all factors of income
- A. The taxes earned by the State
- B. The sum of all factors of income
- C. Personal incomes of all the citizens
- D. Surplus of exports over imports
Explanation
National income is the total income earned by the factors of production, including wages, rent, interest and profit. Taxes and the trade balance are separate national-accounting items, while personal income is only one related measure.
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