Exports of mangoes by India is a part of _____________ method of measurement of its national income.
Show answer & explanation
Correct answer: C
Explanation
The correct answe ris option 3 i.e. expenditure.
The export of mangoes by India is part of the expenditure method of measuring national income. This method calculates GDP by summing up all final expenditures, including consumption, investment, government spending, and net exports (exports minus imports). Since mango exports contribute to net exports, they are included under this approach.
Other options:
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Income Method – Measures national income by summing up all factor incomes (wages, rent, interest, profit).
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Value Added (Output) Method – Computes GDP by adding the value added at each production stage (e.g., farming, processing, exporting mangoes).
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Circular Flow – A conceptual model showing income and expenditure flows between households, firms, and government, not a measurement method.
Thus, exports align with the expenditure method, while production stages fit the value-added method, and earnings from exports fall under the income method.