From the given options, select the method that measures national income through a summation of factor incomes paid out by all production units…

CA Foundation · Business Economics · PYQS · May 2026
From the given options, select the method that measures national income through a summation of factor incomes paid out by all production units within the domestic territory of a country such as wages, salaries, rent, interest and profit, with the exception of transfer income.
(A) A. Value added method
(B) B. Expenditure method
(C) C. Disposal method
(D) D. Income method

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. Income method

Topics: Determination of National Income

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