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Question : Which of the following statements is/are correct concerning income or output?
i. Income or output are flows.
ii. Income or output are stocks.
iii. Income or output can be defined over a period.

Option 1: Only i and iii

Option 2: Only ii and iii

Option 3: Only i

Option 4: Only i and ii


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Only i and iii


Solution : The correct answer is Only i and iii .

By directly calculating the total value of all the goods and services a country produces, the output approach aims to determine the total output of that country.

According to the income approach, a country's total output is equal to the total factor income that its citizens or residents receive. Income stocks are investments that have a low-risk profile and provide consistent, predictable income over time—typically in the form of dividends.

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