The correct answer is C. Employee’s wages.
Employee’s wages account for the largest percentage of national income. In 2020, employee compensation accounted for 61.7% of U.S. national income. This is followed by proprietors’ income (13.2%), rental income (10.1%), and interest income (14.9%).
Employee compensation is the total amount of money paid to employees for their work. This includes wages, salaries, bonuses, and commissions. Proprietors’ income is the income earned by self-employed individuals. This includes income from businesses, farms, and rental properties. Rental income is the income earned from renting out property. Interest income is the income earned from lending money.
The percentage of national income earned in each form varies over time. For example, in 2007, employee compensation accounted for 62.8% of U.S. national income. This percentage declined to 61.7% in 2020. The percentage of national income earned in each form also varies across countries. For example, in 2019, employee compensation accounted for 69.6% of U.S. national income, but only 57.2% of Chinese national income.