Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

What will be the GDP by Income Method in crore ?

  Firm A Firm B
Wages 20 60
Profits 30 90
Options:

80 crore

200 crore

110 crore

150 crore

Correct Answer:

200 crore

Explanation:

The correct answer is option (2) : 200 crore

GDP by income method = sum total of factor incomes, which is equal to total wages received (workers of A and B) and total profits earned (by A and B)

GDP by income method = 80 + 120 = 200