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Q: Which of the following methods is used to calculate national income by summing the total expenditure on final goods and services in an economy?
  • A. Expenditure Method
  • B. Output/Product Method
  • C. Value Added Method
  • D. Incme Method
Correct Answer: Option A - The three different ways to measure National Income are, Income Method, Expenditure Method and Product method. In Expenditure Method, we calculate national income by summing the total expenditure on final goods and services in an economy. This approach focuses on products and services generated during one year within the region.
A. The three different ways to measure National Income are, Income Method, Expenditure Method and Product method. In Expenditure Method, we calculate national income by summing the total expenditure on final goods and services in an economy. This approach focuses on products and services generated during one year within the region.

Explanations:

The three different ways to measure National Income are, Income Method, Expenditure Method and Product method. In Expenditure Method, we calculate national income by summing the total expenditure on final goods and services in an economy. This approach focuses on products and services generated during one year within the region.