Which of the following is NOT included in-measuring the National income through the income approach?
The income approach is one of the methods used to measure national income, which calculates national income by summing up all the incomes earned by different factors of production within an economy. However, the allowance given to an aged mother by a civil servant would not be included in the measurement of national income through the income approach.
The income approach typically includes the following components:
-Wages and salaries earned by individuals, such as the income earned by a bricklayer and the salary earned by a doctor. - Profits earned by businesses, such as the profit earned by Nigerian Bottling Company Plc and NITEL Plc.
- Rent earned from the use of property and land.
- Interest earned on savings and investments.
Allowances given to individuals by civil servants, is not considered as part of national income because they do not represent income generated from production or factor inputs within the economy.
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