Explain Different Methods of Measuring National Income
National Income means the total value of goods and services produced annually in a countryThere are three alternative methods of measuring national incomeThey are as follows. There are four methods of measuring national income. Methods For Calculation Of National Income A circular flow of income and expenditure exists within an economy where factor income is earned from the production of goods and services and the income is spent on the purchase of produced goods. . In the income method the national income is measured by adding up the pretax income generated by the individuals and companies in the economy. The total cost of production in the economy will always equal the wages paid to labourers rent to the landowner interest on capital and profit to the entepreneursand all. The essential components. Total income and. This method measures the output of the country. In this method we add net income payments received by all c...