Question:
The main components of primary income are
(1) compensation of employees, gross operating surplus and net taxes on production and imports.
(2) compensation of employees, operating surplus and other net taxes on production.
(3) compensation of employees, gross operating surplus and mixed incomes.
(4) compensation of employees, operating surplus and consumption of fixed capital.
(5) compensation of employees, gross operating surplus and other net taxes on production.
Correct Answer:
(1)
Answer Explanation:
In macroeconomic accounting, the primary income generated by domestic production is distributed as compensation to employees (wages), gross operating surplus/mixed income (profit to firms/entrepreneurs), and net taxes on production and imports (revenue to the government).
Topic: National Income Year: 2020
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