Which national income accounting measure does the BEA define as "all net incomes, net of consumption of fixed capital, earned in production"?

The measure defined by the BEA as "all net incomes, net of consumption of fixed capital, earned in production" is National Income. This concept encapsulates the total income earned by a nation's factors of production, including wages, profits, rents, and taxes, and excludes the depreciation of capital goods.

By looking at net income, National Income provides a clearer picture of the economic performance of a country, as it accounts for the reduction in value of capital assets over time due to wear and tear or obsolescence. This contrast with Gross Domestic Product (GDP), which does not deduct capital consumption, makes National Income an essential indicator for assessing the actual wealth generated by an economy.

In comparison, Gross Domestic Product measures the total output of goods and services produced, while Gross National Product extends this to include income earned by residents from investments abroad minus income earned by foreign residents within the country. Net Domestic Product focuses on GDP minus depreciation. Therefore, National Income is distinct in its focus on net earnings from production, making it the correct answer.