Q.A farmer sells wheat worth ₹40 to a miller, who converts it into flour and sells it to a baker for ₹70. The baker bakes bread from the flour and sells it to a final consumer for ₹100. Using the Value Added Method, calculate the contribution of this chain of production to GDP, and verify your answer using the Expenditure Method.

The missing term is the Product Method (also called the Value-Added or Inventory method).

National income is measured by three methods, each known by another name: the income method (also the factor-cost or distributive-share method) sums up factor incomes; the output/product method (also the value-added or inventory method) sums the value added by all producing units; and the expenditure method (also the outlay method) sums final expenditure. Since the income method is pair …

Agriculture belongs to the primary sector — option (d).

In the Tamil Nadu HSC Class-12 Economics syllabus (National Income), the economy is divided into sectors for measuring output:

• Primary sector — activities that directly exploit natural resources: agriculture, fishing, forestry, mining.
• Secondary sector — manufacturing, industry and construction.
• Tertiary sector — services such as trade, transport and banking. …

Completing the correlation: Output method : Product method :: Income method : Factor cost method. Answer: Product method (also called the inventory or value-added method).

Why: National income can be measured by three methods, each with an alternative name:

• Output method — measures national income as the market value of final goods and services (or the value added at each stage) produced in a year; it is also called the product method / inventory method / value-added method. …

Under the income method, national income is measured by summing up all forms of income.

National income can be estimated by three methods — the product (output) method, the income method and the expenditure method. Under the income method, national income is obtained by adding together all the incomes earned by the factors of production for their contribution to output during a year: rent (for land), wages and salaries (for labour), interest (for capital) and profit (for enterprise), plus mixed income of the self-employed.

…

The missing term is Income method, which is the same as the factor cost method of measuring national income.

National income can be measured by three methods, each with an alternative name:

The statement is True.

National income is the money value of all final goods and services produced in a country in an accounting year. Since physical goods and services are heterogeneous (cloth, wheat, teaching, etc.) they cannot be added directly; **money acts as the common measurin …

Agriculture belongs to the primary sector.

For measuring national income (product method), the economy is grouped into three sectors:

• Primary sector — activities that directly exploit natural resources: agriculture, animal husbandry, fishing, forestry and mining.
• Secondary sector — activities that convert raw materials into goods: manufacturing, industry and construction. …