[Solved] Which of the following is included in the Income Method of calculating National Income? — Ans: Wages and salaries paid to employees | Economic Awareness

Economic Awareness - Sectors of Indian Economy

Which of the following is included in the Income Method of calculating National Income?

AWages and salaries paid to employees

BTransfer payments made by the government

CSale of second-hand goods

DFinancial transactions like stock market trading

Step-by-Step Solution

Step 1: Identify components of Income Method
The Income Method includes factor incomes such as wages, rent, interest, profit, and mixed income.
Step 2: Analyze options for inclusion
Wages and salaries are payments to labor and are included. Transfer payments, sale of second-hand goods, and financial transactions are excluded as they do not represent factor incomes from production.
Final Answer:
Wages and salaries paid to employees → Option A
Quick Check:
Income Method includes = Wages and salaries ✅

Quick Trick: Remember factor incomes only, exclude transfers and financial deals.

Common Mistakes:

Confusing transfer payments or financial transactions as income method components.

Master "Sectors of Indian Economy" in Economic Awareness

Start learning the concept with an interactive lesson.

More Economic Awareness Quizzes

Which of the following is included in the Income Method of calculating National Income?