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Q: Which of the following is not a properly stated component of the expenditure method of measuring national income?
  • A. Final government expenditure
  • B. Export and Import expenditure
  • C. Final investment expenditure by firms
  • D. Final expenditure by households
Correct Answer: Option B - Export and Import expenditure is not a properly stated component of the expenditure method of measuring national income. The Expenditure method is a system used for determining the Gross Domestic Product (GDP) of a country. In Expenditure Method, the income is calculated as the aggregate of all expenditures incurred by households, firms, government and foreigners.
B. Export and Import expenditure is not a properly stated component of the expenditure method of measuring national income. The Expenditure method is a system used for determining the Gross Domestic Product (GDP) of a country. In Expenditure Method, the income is calculated as the aggregate of all expenditures incurred by households, firms, government and foreigners.

Explanations:

Export and Import expenditure is not a properly stated component of the expenditure method of measuring national income. The Expenditure method is a system used for determining the Gross Domestic Product (GDP) of a country. In Expenditure Method, the income is calculated as the aggregate of all expenditures incurred by households, firms, government and foreigners.