Distinguish between the following :
Output method and Income method of measuring national income.
|Sr.No.||Output Method||Income Method|
|(i)||Output method is also known as product method or inventory method.||Income method is also known as factor cost method.|
|(ii)||According to product method, the total value of final goods and services produced in a country during a year is calculated at market price or adding up values at each higher stage of production.||According to income method, the net incomes earned by the factors of production in the form of rent, wages, interest and profits are added up to obtain the national income for one year.|
|(iii)||The output method is widely used in underdeveloped countries for calculating national income.||The income method is used in developed countries like USA and UK for estimating national income.|
Concept: Concept of National Income
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