In the estimation of national income using the Income Method, why is 'Mixed Income of Self-Employed' incorporated as a distinct component?

Options:

  • A: Because self-employed individuals are exempted from paying direct taxes on their earnings.
  • B: Because it is difficult to separate the factor payments of self-employed individuals into wages, rent, interest, and profit.
  • C: Because self-employed individuals operate exclusively in the informal or unorganized sector of the economy.
  • D: Because their income is entirely derived from transfer payments and subsidies from the government.

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