What is operating surplus class 12?

In this lecture, I would discuss what is operating surplus in national income and related aggregates chapter of macroeconomics class 12 CBSE Board.

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What Operating surplus

Operating surplus is the factor payments arising from the property as (rent, royalty, and interest) and income from entrepreneurship (profit).

Significance of Operating Surplus

Operating surplus is used to calculate domestic income by Income Method.

following is the formula.

Domestic Income = Compensation of emlpoyees + Mixed Income + Operating Surplus