Join Examsbook
Answer : 1. "The value of exports to be added and the value of imports to be subtracted"
While computing National Income estimates, which of the following is required to be observed?
5Q:
While computing National Income estimates, which of the following is required to be observed?
- 1The value of exports to be added and the value of imports to be subtractedtrue
- 2The value of exports to be subtracted and the value of imports to be addedfalse
- 3The value of both exports and imports to be addedfalse
- 4Thevalue of both exports and imports to be subtractedfalse
- Show AnswerHide Answer
- Workspace
Answer : 1. "The value of exports to be added and the value of imports to be subtracted"
Explanation :
National Income of a country can be defined as the total market value of all final goods and services produced in the economy in a year. In expenditure method, the National Income is measured by adding up the four flows, - namely C, I, G, X and M.
Thus, Y = C+1+G + (X-M) + (X- M) Where,
C = Total consumption expenditure
I = Total investment expenditure
G = Total government expenditure
X = Export,
M = Import