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Question : Which of the following is not a method of measuring national income?

Option 1: Intermediate goods method

Option 2: Expenditure method

Option 3: Income method

Option 4: Product method


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Intermediate goods method


Solution : The correct option is the Intermediate goods method .

Intermediate goods, also known as producer goods or semi-finished goods, are goods used in the production of final goods.

The methods of measuring national income are:

  • The expenditure method is used to calculate GDP (gross domestic product). It is the combination of consumption, investment, government spending, and net exports.
  • The income method contains profits, wages, interest on capital, etc.
  • The product method is also known as the value-added method. This can calculate national income by adding value to the product.
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