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Question : According to ___________________, factor of production by the way of wages, profit, rent, interest etc are summed up to obtain the national income.

Option 1: Income method

Option 2: Expenditure method

Option 3: Value added method.

Option 4: All of the above.


Team Careers360 8th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Income method


Solution :

According to income method, factor of production by the way of wages, profit, rent, interest etc are summed up to obtain the national income. Income method measures national income from the perspective of factor income. It includes income received by all the residents of a country for productive purposes.
Hence, Option A is correct.

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