The summation of the total production of all firms and industries in the economy gives us the ____________ or value-added method.

Value Added

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

Income

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

Expenditure

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

Production

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

Open in App

Solution

The correct options are
A
Value Added

D
Production

The value-added and the production methods are one and the same.

Suggest Corrections

Similar questions

Q. The method which takes the summation of the total production of all firms or industries in the economy is the method.

Q12. Consider the following statements with respect to Gross Domestic Product (GDP):

1. It is the value added by all the firms in the economy.

2. It is the final value of goods and services produced in the economy.

3. It is the sum of final consumption and investment expenditure by the household, private and government sector and net of exports and imports.

4. It is the income received by the four factors of production.

Select the correct answer using the code given below.

(a) From the following data compute net value added at factor cost:

$\begin{matrix} Items & Domestic sales & Subsidies & Purchase of raw material & Exports & Depreciation & Import of & Net in domestic market & indirect taxes In Crores & 2500 & 40 & 500 & 200 & 100 & 600 & 60 \end{matrix}$

(b) Intermediate goods and corporate tax are included in national income indirectly. How ?

Calculate $G N P_{m p}$

(a) By Income Method

(b) Expenditure Method

$\begin{matrix} (a) & Rent & 40 (b) & Private Final Consumption Expenditure & 800 (c) & Net Exports & 20 (d) & Interest & 60 (e) & Profit & 120 (f) & Government Final Consumption Expenditure & 200 (g) & Net Domestic Capital Formation & 100 (h) & Compensation of Employees & 800 (i) & Depreciation & 20 (j) & Net Indirect Taxes & 100 (k) & Net Factors Income From Abroad & (-) 20 \end{matrix}$

Q. Write short notes on:
1) Value added approach
2) Expenditure method of measuring national income.
3) Circular flow of national income
4) Personal disposable income
5) Net national product at factor cost

On the basis of the following data about an economy which consists of only two firms, find out the value added by firm B.

$\begin{matrix} Items & (in lakh) Sales by firm A & 100 Purchases from firm B by firm A & 40 Purchases from firm A by firm B & 60 Sales by firm B & 200 Closing stock of firm A & 20 Closing stock of firm B & 35 Opening stock of firm A & 25 Opening stock of firm B & 45 \end{matrix}$

Join BYJU'S Learning Program

The summation of the total production of all firms and industries in the economy gives us the ____________ or value-added method.

The correct options are A Value Added D Production The value-added and the production methods are one and the same.

The correct options are
A
Value Added

D
Production

The value-added and the production methods are one and the same.