Which of the following are sources of income of households?
i. Working as labourers in private firms
ii. Working in government department and earning salary
iii. Leasing out land
iv. Working as entrepreneurs
v. Lending capital

i, ii, iii, iv, v

The correct answer is option 4: i, ii, iii, iv, v

The households consist of people. These people work in firms as workers and earn wages. They are the ones who work in the government departments and earn salaries, or they are the owners of firms and earn profits. Indeed the market in which the firms sell their products could not have been functioning without the demand coming from the households. Moreover, they can also earn rent by leasing land or earn interest by lending capital.

Here's the reasoning for each option:

i. Working as labourers in private firms: Many households derive income from wage or salary earnings through employment in private companies or firms. This is a common source of income for individuals who work as employees in various sectors of the economy.

ii. Working in government department and earning salary: Similarly, individuals working in government departments or agencies receive salaries as compensation for their services. This constitutes another significant source of income for households.

iii. Leasing out land: Some households own land or other real estate properties that they lease out to tenants. Rental income from such properties serves as a source of income for these households.

iv. Working as entrepreneurs: Entrepreneurial activities, such as starting and running businesses, can generate income for households. Entrepreneurs earn profits from their business ventures, which contribute to their household income.

v. Lending capital: Some households may have surplus funds that they lend out to others, either directly or through financial institutions. Interest earned on such loans constitutes another source of income for these households.