Correct Option: C

The income approach equates the total output of a nation to the total factor income received by residents or citizens of the nation. Transfer incomes are excluded from national income. Therefore, wages of labourers will be included, pensions of retired workers will be excluded from national income. Labour income includes, compensations in kind. Non-labour income includes dividends, un distributed profits of corporations before taxes, interest, rent, royalties, profits of non-incorporated enterprises and of government enterprises.