Which of the following is NOT included in-measuring the National income through the income approach?

Source: JAMB · 2024

Which of the following is NOT included in-measuring the National income through the income approach?

  1. Allowance given to an aged mother by a civil servant ✓
  2. Income earned by a bricklayer
  3. Profit earned by Nigerian bottling company plc
  4. profit earned by NITEL plc
Explanation

National income measures value created through production. Personal gifts between family members are not production.

Wages from work and company profits come from producing goods and services. Allowances to family do not.

Transfer payments like gifts and allowances are not counted in national income calculations.

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