Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

What term is given to the sum of rent, royalty, interest and profits while calculating national income with the help of income method?

Options:

Operating surplus

Transitory surplus

Mixed income

Compensation to factors of production

Correct Answer:

Operating surplus

Explanation:

Operating surplus is income from property ( rent, interest and royalty) and income from entrepreneurship (profits).