Question

Which formula expresses National Income by the Income Method?

Options

• \[NI=R+W+I+P+MI+(X-M)+(R-P)\]

• \[NI=R-W-I-P-MI-(X-M)-(R-P)\]

• \[NI=W+I+MI-(X-M)\]

• \[NI=R+W+I+P-MI+(X+M)+(R+P)\]

Answer 1

National income is expressed as \[NI=R+W+I+P+MI+(X-M)+(R-P)\]. It adds domestic factor incomes, net exports, and net receipts from abroad.