Question

complete the following table related to the three methods of estimating national income​

Answer 1

Answer:

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Explanation:

Answer 2

Answer: The national income of a country can be measured by three alternative methods: (i) Product Method (ii) Income Method, and (iii) Expenditure Method

Explanation:

1. Product Method:

• In this method, national income is measured as a flow of goods and services. We calculate money value of all final goods and services produced in an economy during a year.
• Final goods here refer to those goods which are directly consumed and not used in further production process

• The money value is calculated at market prices so sum-total is the GDP at market prices. GDP at market price can be converted into by methods discussed earlier

2. Income Method:

• Under this method, national income is measured as a flow of factor incomes.
• There are generally four factors of production labour, capital, land and entrepreneurship. Labour gets wages and salaries, capital gets interest, land gets rent and entrepreneurship gets profit as their remuneration.
• Besides, there are some self-employed persons who employ their own labour and capital such as doctors, advocates, CAs, etc. Their income is called mixed income.
• The sum-total of all these factor incomes is called NDP at factor costs.

3. Expenditure Method:

•  In this method, national income is measured as a flow of expenditure. GDP is sum-total of private consumption expenditure.
• Government consumption expenditure, gross capital formation (Government and private) and net exports (Export-Import).