Home › Karnataka PUC II › economics › national_income_accounting › Which item is included in the COMPENSATION of em…
Which item is included in the COMPENSATION of employees in the income method?
AWages and salaries plus employer's contribution to social security
BIndirect taxes
CDepreciation
DNet exports
Answer & Solution
Correct answer: A. Wages and salaries plus employer's contribution to social security
Compensation of employees = wages + salaries (cash + kind) + employer's social-security contributions. Depreciation, indirect taxes, and net exports are different line items.
Related questions
GDP and welfare are NOT identical because GDPWhy is NNP at FACTOR COST (rather than at market prices) called the National Income?If GDP at market prices = ₹500, depreciation = ₹50, net indirect taxes = ₹40, NFIA = ₹10, Which equation correctly states the EXPENDITURE method of GDP at market prices?Which is a TRANSFER payment in the macroeconomic framework?Personal Disposable Income (PDI) equalsIf NDP at factor cost is ₹100 lakh and net indirect taxes are ₹15 lakh, NDP at market pricWhich of the following is INCLUDED in GDP?