Concept:The income approach measures national income by adding up income earned by factors of production in producing goods and services.
Explanation:Under the income approach, national income is the total of factor earnings from productive activities in an economy.
The main components include wages and salaries, such as the income earned by a bricklayer, and company profits, such as those earned by NITEL plc and Nigerian Bottling Company plc.
Rent and interest are also included as factor rewards.
However, transfer payments are not part of national income.
The allowance given to an aged mother by a civil servant is a transfer payment, not a reward for productive work.
It is a gift or personal transfer, so no new good or service is produced in exchange for it.
Consequently, this allowance does not reflect any contribution to output and must be excluded when measuring national income through the income approach.
Answer:D. Allowance given to an aged mother by a civil servant