The correct answer is the Estimated rent of the self-occupied property. Explanation & Key Takeaways: • National income is the total value of a country's final output of all new goods and services produced in a given period, generally one year. • National Income = C + I + G + (X – M) Where, C = Total Consumption Expenditure I = Total Investment Expenditure G = Total Government Expenditure X = Export, M = Import. • The National Income can be measured by Gross National Product (GNP), Gross Domestic Product (GDP), Gross National Income (GNI). Net National Product (NNP), Net National Income (NNI), and Per-Capita Income (PCI). • However, there are primarily three alternative methods or approaches to measure national income - • Product Method • Income Method • Expenditure Method. Related Concepts: • In the Product method, national income is measured as a flow of goods and services. • In the Income method, national income is measured by adding up the incomes of the factors of production used in the production process. • In the Expenditure method, national income is the sum total of final expenditures made by consumers, business firms, governments, and foreigners during a year. • Items included in the National Income- • Goods produced for self-consumption • Estimated rent of the self-occupied property • Items not included in National Income- • Intermediate goods • Transfer payments (unilateral payments made without expectations of return; like gifts, unemployment allowance, donations, etc) • Sale and purchase of old goods and existing services (shares are not included unless they are through an IPO) • Windfall gains • Black money • Work done by housewives