Assertion (A): The value added, income and expenditure methods give the same national income.
Reason (R): The value of what is produced is paid out as incomes, and spending on output is the revenue that pays them.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Each method measures the same circular flow at a different point.
R explains why they must agree.

Concept: Why the methods agree
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsWhy the three methods agree

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Assertion (A): The value added, income and expenditure methods give the same national income.Reason (R): The value of what is produced is paid out as incomes, and spending on output is the revenue that pays them.

Explanation

Assertion (A): The value added, income and expenditure methods give the same national income.
Reason (R): The value of what is produced is paid out as incomes, and spending on output is the revenue that pays them.