Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Which of the following is a combined factor income that cannot be separated into various income components?

Options:

Compensation which is given to employees 

Deferred income

Mixed income of self employed

Any of the above

Correct Answer:

Mixed income of self employed

Explanation:

Under the Income method of calculating National Income: Classification of factor payments can be done in the following 3 heads:

  • Compensation of employees
  • Operating surplus
  • Mixed income of self employed

Income of own account workers ( like farmers, barbers etc.) and unincorporated enterprises is called as Mixed income. They do not maintain proper accounts. As a result, it becomes difficult to classify their income among C.O.E. and O.S. etc.