Define and explain in brief the production method of calculating natio

1.	Define and explain in brief the production method of calculating national income.
Answer» Production (output) method: The sum of monetary value of finished goods and services produced in agriculture, industries and service sector in a country is called the national income of that country. Thus, National income – (Production in agriculture + Production in industries + Production in service sector) x Market value This method of calculating national income has been developed from the definition given by Prof. Marshall. Classification of economy in different sectors: To obtain the national income the economy is classified into various sectors like agriculture, industries, services, mines, construction, manufacturing, trade-commerce, transportation, communication, banking, education, etc.

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

Answer»

Production (output) method:

The sum of monetary value of finished goods and services produced in agriculture, industries and service sector in a country is called the national income of that country.
Thus, National income – (Production in agriculture + Production in industries + Production in service sector) x Market value
This method of calculating national income has been developed from the definition given by Prof. Marshall.

Classification of economy in different sectors:

To obtain the national income the economy is classified into various sectors like agriculture, industries, services, mines, construction, manufacturing, trade-commerce, transportation, communication, banking, education, etc.

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

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