WBCS.LIVE practice question

The National Income of a country is fundamentally calculated as what?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Sum total of all individual bank savings.
  2. Total revenue collected from income tax.
  3. Total value of all imported goods.
  4. Sum total of factor incomes.

Correct answer and explanation

Correct answer: Sum total of factor incomes.

Explanation: āœ… Correct Answer: D) Sum total of factor incomes. šŸ“š Explanation: In macroeconomics, the National Income is accurately calculated as the sum total of all factor incomes earned by the normal residents of a country over a specific accounting year. These vital factor incomes simply include the rent, wages, interest, and profits generated by participating directly in the production process.