Identify the term/concept which is not included in the estimation of National Income of an economy.

Scholarships

The correct answer is option (3) : Scholarships

National Income is a measure of the economic performance of a country and is typically calculated based on income generated within the borders of that country.

1. Retained Earnings of Residents' Companies in Abroad : This refers to profits earned by domestic companies operating in foreign countries that are not repatriated to the home country. These earnings are typically included in national income calculations because they represent income generated by domestic entities, albeit outside the country.

2. Bonus : Bonuses are additional payments made to employees based on their performance, company profits, or other criteria. Bonuses are considered part of employee compensation and are therefore included in national income calculations as a component of wages and salaries.

3. Scholarships : Scholarships are typically transfer payments, which are one-sided transfers of income that do not directly arise from production activity. They are not included in national income because they don't reflect the current production of goods and services within the economy.

4. Royalty : Royalties are payments made for the use of intellectual property or natural resources. They represent income earned by the owner of the property or resources. Royalties are included in national income calculations as they constitute income generated from economic activities.