'Commodity Service method' is another name for:

Expenditure method

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Income method

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Value-added method

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None of these

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Solution

The correct option is B Value-added method
Commodity service method also known as value added method refers to a method for calculating the national income of quoted price of a commodity in general where the amount of cost in each level of production is added to generate the total price of the commodity including the normal profit for the production unit.

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Similar questions

Q. With reference to the ‘methods of GDP calculation’, Consider the following statements:

Which of the statements given above is/are correct?

1 only
2 only
Both 1 and 2
Neither 1 nor 2

The method used to calculate the income by adding all the expenditures on the purchase of final goods and services produced during an accounting year is __________.

Q. A consumer buys 50 units of a commodity priced at ₹20 per unit. When the price increases by ₹5 per unit, the consumer spends the total of ` ₹1,000 on the commodity. What is the price elasticity of demand by the total expenditure method?

[1 mark]

Comment upon the degree of elasticity of demand for Good X, in the following given situations, if the price of the commodity rises from Rs. 5 per unit to Rs. 7 per unit and the quantity demanded falls from 20 units to 16 units :

i) Using the total household expenditure method,

ii) Using proportionate method.

Comment upon the degree of elasticity of demand for Good X, in the following given situations, if the price of the commodity rises from Rs. 5 per unit ot Rs. 7 per unit and the quantity demanded falls from 20 units to 16 units:
(i) Using the total household expenditure method,
(ii) Using proportionate method.

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