Business Studies, asked by tanmay00, 1 year ago

Methods of measuring national income

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Answered by Alisha3K

divide the total income by population of country

tanmay00: yeah thank,but i want methods of measuring like i have heard that there are 3 method.

tanmay00: not the formula

Alisha3K: they are 1. value added method 2. expenditure method and income method...though i don't know there explanation!

tanmay00: yeah it's all right. thank you

Alisha3K: Pleasure.. sorry for not answering upto ur expectations! : )

tanmay00: your answer was upto the mark. as i wanted the answer for mcqs purpose. so thank you again

Answered by tinapatinsome

There are 3 methods of measuring National Income

1. Value Added Method - This method is used to measure national income in different phases of production in the circular flow.

2. Income Method - It 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

3. Expenditure Method - The expenditure method is a system for calculating gross domestic product (GDP) that combines consumption, investment, government spending and net exports.

tanmay00: thank you!.

tinapatinsome: np!

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