Gross profit = Net sales (total receipts) - Cost of goods  sold (total expenditure)

In other words it is the total receipt over total cost.

There are only three methods are using for calculating of national income i.e., value added method, income method and expenditure method.

A teacher who is teaching his own daughter is not a part of economic activity as the imputed value of such activities can not be calculated.

Consumption and income are directly or positively  related. An increase in income results in increase in consumption  and vice-versa.

Income which is not produced by any production process  is called transfer income. It is generally money received by  an individual or family from the state or other body, often the  pension or unemployment benefit.

A rising per Capita Income will indicate a better welfare if it is accompanied by changed Income distribution in favour of Poor.

Investment multiplier means those elements by which investment is increased and due to increasing of investment. There is increase in income and production. So effect of ‘Investment Multiplier’, according to above options is shown on income