n NISM Certifications
XV NISM Series XV
Medium

State whether True or False: The Income Method measures national income as the aggregate flow of goods and services produced in the economy.

Practice question from NISM XV Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    True

  2. False

    Correct answer

Why this is the answer

The Income Method measures national income by aggregating factor incomes such as wages, rent, interest, and profits. The Production (or Product) Method measures the flow of goods and services.

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