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Which method is adopted in measuring National Income?
Production Method
Income Method
Expenditure Method
All of these
- Production Method
- Also known as the value-added method.
- Measures national income based on the production of goods and services.
- Gross value of output minus intermediate consumption.
- Income Method
- Focuses on income earned by factors of production.
- Includes wages, rent, interest, and profit.
- Offers insight into the distribution of income.
- Expenditure Method
- Calculates total expenditure on the nation's final goods and services.
- Comprised of consumption, investment, government spending, and net exports.
- Highlights economic activity through expenditure patterns.
- All of these (Correct Answer)
- All three methods are used and are interrelated.
- They provide a comprehensive view of the economy.
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