What is the primary method for calculating National Income using the income approach?

CA Foundation · Business Economics · RTP · September 2025
What is the primary method for calculating National Income using the income approach?
(A) A. Adding up all expenditures in the economy
(B) B. Summing up all factor incomes earned by households and firms
(C) C. Measuring the value added at each stage of production
(D) D. Calculating the difference between exports and imports

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Summing up all factor incomes earned by households and firms

Topics: Determination of National Income

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