Concept:The income approach measures national income by adding all factor incomes earned from production.
Transfer payments are excluded from this measure.
Explanation:The formula for the income approach is:
National Income=Rent+Wages+Interest+Profit+Mixed Income.
Company profits, property rents, and public servants' wages are all factor incomes.
Student grants and scholarships are transfer payments.
They are not received in exchange for producing goods or services.
Therefore, they are not included in national income.
Answer:C. Student's grants and scholarships