Question : Which of the following is not included while estimating national income through income method?
Option 1: Rent
Option 2: Mixed Incomes
Option 3: Pension
Option 4: Undistributed profits
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Correct Answer: Undistributed profits
Solution : The correct option is Undistributed profits.
Undistributed profits, also known as retained earnings, are not counted when calculating national income using the income method. Only profits that are actually paid out to individuals as dividends are included in this calculation. Undistributed profits are considered a form of savings for the company and are not counted as income until they are distributed to shareholders.
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