Income Method measures national income from:
The income Method measures national income from:
a) Income generation angle
b) Income paid out angle
c) Income spent angle
d) All the above
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Ans – b)
Explanation:-
The income method is concerned with 2nd phase of the Circular Flow of income. Where income generated in the 1st phase (production phase) is paid to out factors of production (Household).
Thus Income method measures the national income with income paid out the angle to
- employee as compensation
- rent to the building owner
- Interest to investor
- profit to entrepreneur
- Income to self employed
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