Multiple Choice Questions on National income can be estimated with the help of ........ for UPSC EPFO Exam Preparation

Growth and development

Indian Economy

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Indian Economy - Understanding the basics of Indian economic system

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    National income can be estimated with the help of:

    Product method

    Incorrect Answer

    Income method

    Incorrect Answer

    Expenditure method

    Incorrect Answer

    All of the above

    Correct Answer
    Explanation:

    The Product Method: In this method, all goods and services produced during the year in various industries are added up. This is also known as value-added to GDP or GDP at the sector of origin's cost factor.

    The Income Method: The sum of all factor incomes is GDP by revenue method: wages and salaries (employee compensation) + rent + interest + benefit.

    Expenditure Method: This approach focuses on products and services generated during one year within the region.GDP is subtracted from the portion of consumption, investment, and government spending expended on imports. Likewise, all manufactured components, such as raw materials used in the manufacture of products for sale, are also exempt.


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