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  • Question
  • The Largest Component of National Income is


  • Options
  • A. Proprietors Income
  • B. Compensation of Employees
  • C. Corporate Profits
  • D. Rental Income

  • Correct Answer
  • Compensation of Employees 

    Explanation

    National Income is the total income value of the goods and services produced by the residents of a country, usually during the period of one year.

    National Income is categorized into 6 components. They are :

    1. Compensation of Employees (Wages and Benefits)
    2. Corporate Profits
    3. Rental Income
    4. Proprietors Income (Income of unincorporated business)
    5. Net Interest

    The Largest Component of National Income is Compensation of Employees.

     

    The Largest component of National Income in India is Service Sector.

     

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    • Options
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