What will be the GDP by Income Method in crore?
| Firm A | Firm B | |
| Wages | 20 | 60 |
| Profits | 30 | 90 |
Answer & explanation
Correct answer: option 2
The correct answer is Option 3: 200 Crore
To calculate GDP by the income method, we sum up the incomes earned by factors of production within the economy.
GDP contributed by firm A= Wages +Profit = 20+30=50
GDP contributed by firm B= Wages +Profit = 60+90=150
Total GDP contributed by Firm A and B = 50+150= 200