Asked by Riley Taylor on May 17, 2024
Verified
Which of the following is not a component of national income?
A) Interest
B) Rental income
C) Wages and salaries
D) Gross investment expenditures
National Income
The total value of all the goods and services produced by a country’s economy in a specific period, including income from foreign investments.
Gross Investment Expenditures
The total amount spent on new capital assets, before accounting for depreciation.
- Comprehend the idea of national income and its constituent elements.
Verified Answer
FM
Fhatuwani MutavhatsindiMay 23, 2024
Final Answer :
D
Explanation :
Gross investment expenditures are not a component of national income. National income is the total income earned by a country's citizens and businesses, including wages and salaries, interest, rental income, and profits. Gross investment expenditures are a measure of the total amount of money spent on new capital goods in an economy.
Learning Objectives
- Comprehend the idea of national income and its constituent elements.