Question

Income method of measuring national income includes

a. all factor income

b. all transfer income

c. all transfer payments

d. Both (a) & (b)

​

Answer 1

Answer:

Income method of measuring national income includes a. all factor income

Explanation:

The Income Method measures national income from the side of payments made to the primary factors of production in the form of rent, wages, interest and profit for their productive services in an accounting year. ... Hence, value of national income method should be the same as the one calculated by value added method.

Answer 2

Answer:

A. all factor income

The Income Method measures national income from the side of payments made to the primary factors of production in the form of rent, wages, interest and profit for their productive services in an accounting year. ... Hence, value of national income method should be the same as the one calculated by value added method.