Question

In parliamentary countries like South Africa and Brazil, the top 20 percent of people take away more than ------------.
A) - 50% of the national income
B) - 60%
C) - 65%
D) – 70%

Answer 1

Hint:The National Income of democratic countries like South Africa and Brazil is the total amount of income accruing to a country from economic activities in a definite time. It includes payments made to all capital in the form of wages, interest, rent, and profits.

Complete answer:
In democratic countries like South Africa and Brazil, the top 20 percent of people take away more than 60 percent of the national income, leaving less than 3 percent for the bottom 20 percent population. Countries like Denmark and Hungary are much better in this deference.
The expenditures are classified as personal consumption expenditure, government expenditure on goods and services, and net foreign investment.
It is the net result of all economic activities of any country for one year and is valued in terms of money.
National income is an uncertain term and is often used interchangeably with the national dividend, national output. The total value of cargo produced and services rendered within a country during a year is its Gross Domestic Product. The net production of the country during a year is its NDP. During the year a country’s capital assets are subject to wear and tear due to its use or can become obsolete.

Thus, the correct answer is option ‘B’.

Note: The total amount of income accruing to a country from economic activities in a year is known as national income. It includes payments made to all resources in the form of wages, percent, rent, and advantage.