which of the following statements is not true of capital income?
Answer Details
The statement that is not true of capital income is: "it is calculated as National Income Population."
Capital income refers to income earned through investments in assets such as stocks, real estate, and businesses. It is one of the two main categories of income, the other being labor income, which is earned through wages, salaries, and other compensation for work done.
Capital income is an important indicator of economic growth and helps to assess the standard of living of a population. It is calculated as the total income earned through investments in assets. It is also used by the United Nations (UN) to assess and assist developing countries in achieving economic growth.
However, the statement "it is calculated as National Income Population" is incorrect. Capital income is not calculated by dividing the national income by the population. Rather, it is calculated as the sum of all income earned from capital investments, including interest, dividends, rents, and profits.
In summary, capital income is an important indicator of economic growth and helps assess the standard of living. It is calculated as the sum of all income earned from capital investments and is not calculated by dividing the national income by the population.