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

National income includes government expenditure, undisputed profits, and household payments for goods and services.

However, interest from unproductive national debt is not considered national income, as it does not arise from productive activities.

Hence, the correct answer is (b).