Measurement of National Income

National Income is the total value of all goods and services produced in a country in a given period of time. There are various methods to calculate National Income. Let's discuss them in detail below.

Value Added Method
The value-added method calculates national income by adding up the value of all goods and services produced in a country minus the value of all intermediate goods and services used in their production. In other words, it is the value of the final product or service minus the value of the inputs used in its production.

Income Method
The income method calculates national income by adding up all the incomes earned by individuals, businesses, and the government in a country during a given period of time. This includes wages, salaries, profits, rent, and interest.

Expenditure Method
The expenditure method calculates national income by adding up all the expenditures made on goods and services in a country during a given period of time. This includes consumer spending, investment spending, government spending, and net exports.

Investment Method
The investment method calculates national income by adding up all the investments made in a country during a given period of time. This includes investments in physical capital, human capital, and natural resources.

Not a method of measurement of National Income
The investment method is not a method of measurement of national income. While investments are an important contributor to the overall economic growth of a country, they are not a direct measure of national income. Therefore, the investment method cannot be used to calculate national income.

Conclusion
In conclusion, the methods of measurement of national income are value-added, income, and expenditure methods. The investment method, while important, is not used to calculate national income.