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 __________.

Product Method

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Income Method

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Expenditure Method

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

None of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Expenditure Method
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 called expenditure method

Expenditure method: national income is measured as a flow of expenditure. Includes sum total of private consumption expenditure. Government consumption expenditure, gross capital formation (Government and private) and net exports (Export-Import).

Suggest Corrections

Similar questions

Market price of the final goods and services including depreciation produced within the domestic territory of a country during an accounting year is called

Market price of the final goods and services (including depreciation) produced within the domestic territory of a country during an accounting year, is called :

Which of the following method uses adding up of factor payments received during a year to calculate national income?

Q. Which approach to measuring the GDP is based on the accounting reality that all expenditures in an economy should equal the total income generated by the production of all economic goods and services.

Q. Per capita income is the total value of all goods and services produced in a country in one year.

Join BYJU'S Learning Program