Which of the following is NOT included in the national income?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Income received by a person as a donation.
National income measures the total value of goods and services produced in an economy in a year, including all incomes earned by factors of production: rent (for land), interest (for capital), wages (for labour), and profit (for entrepreneurial skill). However, donations, gifts, or transfer payments are not payments for productive services and do not reflect production; hence, they are excluded from national income. The other options represent payments for productive resources, so they are included in the national income calculation.