Question

National income under the Income Method is measured by summing factor incomes earned by which factors of production during an accounting year?

Options

• Pension, scholarship, gifts, donations

• Exports, imports, taxes, subsidies

• Lottery, gambling, capital gains, smuggling

• Land, labour, capital, enterprise

Answer 1

The Income Method adds factor incomes earned by land, labour, capital, and enterprise. The measurement is made for an accounting year.