Define and explain in brief the income method of calculating national

1.	Define and explain in brief the income method of calculating national income.
Answer» Income method: The summation of the income earned by the citizens of a country and the state is called the national income of that country obtained as per the income method. . To calculate the national income through this method, the rent, interest, wages and profits obtained from the four factors of production namely land, capital, labour, and entrepreneur are added together. Moreover, the income obtained from foreign countries is added and the payment done in the form of rent, interest, wages and profits for foreign factors used in the country is deducted. This method of measuring national income has been developed from the definition given by Prof. Pjgou.

Define and explain in brief the income method of calculating national income.

Answer»

Income method:

The summation of the income earned by the citizens of a country and the state is called the national income of that country obtained as per the income method. .
To calculate the national income through this method, the rent, interest, wages and profits obtained from the four factors of production namely land, capital, labour, and entrepreneur are added together.
Moreover, the income obtained from foreign countries is added and the payment done in the form of rent, interest, wages and profits for foreign factors used in the country is deducted.
This method of measuring national income has been developed from the definition given by Prof. Pjgou.