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National Income Accounting — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsNational Income Accounting4 Marks
Question
Explain the income method of estimating national income.
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Answer

Steps in income method.
  1. Classify the production units into industrial sectors.
  2. Estimate factor payments– COE, rent, interest and profit-by each industrial sector to arrive at NVAfc.
  3. Take the sum of NVAfc to arrive at NDPfc.
  4. Add. NFIA to NDPfc to get NNPfc/national income.

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