Advertisement

Write short notes on: 1) Value added approach

Write short notes on:

1) Value added approach

Answer: 

The value added approach measures the national income by estimating the contribution made by each of the producing units in the economy based on the total production within the domestic territory during an accounting year. The gross value added by all the producing units in the domestic territory during an accounting year is called the Gross Domestic Product at market prices (GDPMP).