Question

National Income of a country can be calculated by ________.

• A. two methods
• B. three methods
• C. four methods
• D. five methods

Answer 1

The correct option is B three methods

National income can be calculated by three methods:

• Product method: In this method, national income is measured as a flow of goods and services.
  
• Income method: In this method, national income is measured as a flow of factor incomes. There are generally four factors of production labour, capital, land and entrepreneurship.
  
• Expenditure method: In this method, national income is measured as a flow of expenditure.