Explain different methods of computing national income. What precautions are taken in each case to avoid double counting ?
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The national income of a country can be measured by three alternative methods:
(i) Product Method
(ii) Income Method
(iii) Expenditure Method
Double counting can be avoided. In order. to avoid double or multiple counting, only final goods and services should be included in GDP. However, this should not be regarded as meaning that the farmer or the miller or the baker has not contributes anything to GDP.
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