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Expenditure Method is also known as Income Disposal Method. Explanation:- In this phase, Income earned is fully expended on goods and services produced. Thus another name of the expenditure method is the income disposal method. The other alternative name of…
Mixed Income is the income generated by own-account workers. Explanation:- The Mixed income refers to the income generated by own account workers (like doctors, lawyers, farmers, barbers, etc.) and unincorporated enterprises (like retail traders, shopkeepers etc).
Environmental Pollution caused by industrial plants is an example of Negative Externality. Explanation:- Externalities refer to the benefits or harms of an activity caused by a firm or an individual for which they are not paid or penalized. Activities resulting…
Real GDP = Nominal GDP/Price index × 100
Operating Surplus refers to sum total of income from property and income from entrepreneurship. Explanation:- Operating Surplus is the sum total of income from property and income from entrepreneurship. Income from Property are: Rent Royalty Interest Income from entrepreneurship are:…
The income method is also known as Distributive share Method or Factor Payment Method. Explanation:- The other name of income method are: Distributive share method Factor Payment method
Any reimbursement of business expenses incurred by employees is a part of intermediate consumption and not a part of compensation of employees. Explanation:- All expenses in business incurred in producing final goods and services are intermediate consumption. Thus business expenses…
Value of Output refers to market value of all goods and services produced during a period of one year. Explanation:- Value of Output is the sum total of all goods and services produced during a period of one year.
According to this method, National income is measured as sum total of expenditure incurred on final goods and services produced by households, business firms, government and foreigners with in the economic territory during a given year. The alternative name of…
According to this method, National income is measured as sum total of expenditure incurred on final goods and services produced by households, business firms, government and foreigners with in the economic territory during a given year. Other name of Expenditure…