In this article we will discuss about the measures of national income. In short, national income is a measure of the money value of the goods and services becoming available to the nation from economic activity. There are three approaches to measuring this: first, as a sum of the incomes derived from economic activity these broadly divide into incomes from [...]
The following points highlight the three methods for measuring national income. The methods are: 1. The Product (Output) Method 2. The Income Method 3. The Expenditure Method. 1. The Product (Output) Method: The most direct method of arriving at an estimate of a country's national output or income is to add the output figures of all firms in the economy [...]
The following points highlight the top three methods for measuring the national income of a country. The methods are: 1. The Product Method 2. The Income Method 3. Gross National Expenditure Method. Measuring National Income Method # 1. The Product Method: Also known as the Inventory method or Commodity service method, it consists in finding out the market value of [...]