Match each method with what it adds up.

Match each method with what it adds up. — CUET Economics practice

Question 65

MediumOriginal question

Match each method with what it adds up.

List I	List II
A. Value added method	I. Wages, rent, interest, profit and mixed income
B. Income method	II. Output minus intermediate consumption at each stage
C. Expenditure method	III. Market value of final goods and services only
D. Final product method	IV. Consumption, investment, government spending and net exports

A-II, B-IV, C-III, D-ICorrect answerYour answerA-IV, B-II, C-I, D-IIICorrect answerYour answerA-I, B-III, C-II, D-IVCorrect answerYour answerA-II, B-I, C-IV, D-IIICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

Each method adds the circular flow at a different point.

Concept: What each method adds
Typical timeTypical: 90 s
Your timeYours: —

The rule this testsWhy the three methods agree

Practise this chapter →

Ten questions from Measuring National Income, at your own pace.

Practise this chapter →

Ten questions from Measuring National Income, at your own pace.

Question 65

Explanation