Method of GDP calculation by calculating the sum of all factor incomes is called ______

Expenditure Method

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Income Method

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Product Method

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Solution

The correct option is B Income Method
The income approach to measuring the gross domestic product (GDP) is based on the accounting reality that all expenditures in an economy should be equal to the total income generated by the production of all economic goods and services.

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The value-added method of calculating national income is also called as:

What is meant by the income method of calculating national income?

Particulars	Rs. in crores
(i) GDP at MP (ii) Indirect Taxes (iii) Factor income from abroad (iv) Consumption of Fixed Capital (v) Factor income to abroad (vi) Subsidies	70,150 5,200 800 3,100 300 4,000

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