Which payment is excluded from national income because it is made without a current contribution to production?
Correct answer: C. Pension paid by the government
- A. Wages paid to factory workers
- B. Rent received by a landlord
- C. Pension paid by the government
- D. Profit earned by a business
Explanation
A government pension is a transfer payment, so it redistributes income rather than rewarding current production. Wages, rent and business profit are factor incomes and are included in national income.
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About Economy of Pakistan
Pakistan's economy is examined through agriculture, industry, services, trade, remittances, employment, population, poverty and regional development. The topic also covers GDP and national income, inflation, fiscal and monetary policy, taxation, public debt, the balance of payments, energy constraints and structural challenges, including the role of the State Bank and development planning.
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