Ans.
Output Method
Income Method
1. Under this method national income is estimated by adding the value of all final goods and services produced in a year.
1. Under this method national income is calculated by adding income received by all factors of production during a year.
2. It is widely used by underdeveloped and developed countries.
2. It is widely used by developed countries.
3. It is also known as census of product method.
3. It is also known a factors cost method.
4. It considers output of primary, secondary and tertiary sector and net income from Import and export, receipt and payments.
4. It considers rent + wages + interest + profit + (X - M) + (R + P) and excludes transfer income.
Output Method
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Income Method
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1. Under this method national income is estimated by adding the value of all final goods and services produced in a year.
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1. Under this method national income is calculated by adding income received by all factors of production during a year.
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2. It is widely used by underdeveloped and developed countries.
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2. It is widely used by developed countries.
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3. It is also known as census of product method.
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3. It is also known a factors cost method.
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4. It considers output of primary, secondary and tertiary sector and net income from Import and export, receipt and payments.
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4. It considers rent + wages + interest + profit + (X - M) + (R + P) and excludes transfer income.
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