Assertion (A): Corporate tax is included in national income under the income method.
Reason (R): Corporate tax is paid out of profit, which is a factor income.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Profit = dividends + corporate tax + undistributed profit.
Corporate tax is a part of the profit earned in production, so A is true and R explains it.

Concept: Corporate tax in national income
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The rule this testsIncome method

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Assertion (A): Corporate tax is included in national income under the income method.Reason (R): Corporate tax is paid out of profit, which is a factor income.

Explanation

Assertion (A): Corporate tax is included in national income under the income method.
Reason (R): Corporate tax is paid out of profit, which is a factor income.