Question

Which of the following is not a part of the national income?

• A. Income from government expenditure
• B. The interest amount on the unproductive national debt
• C. Undisputed profit
• D. Household payment to firms for purchasing goods and services

Hint:

What kind of payments are considered productive?

Answer 1

The Correct Option is B

Income from government expenditure, undisputed profits, and household payments to firms for goods and services are all considered parts of the national income.

However, the interest amount on unproductive national debt is not considered part of the national income, as it does not result from productive activities.

Hence, the correct answer is (b).