Value of wheat in flour is a part of __________ method of measurement of its national income.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. value added.
The value-added method calculates national income by summing the value added at each production stage. For wheat in flour, only the incremental value (flour value minus wheat cost) is counted, avoiding double-counting.
Other options:
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Income Method: Sums all factor incomes (wages, rent, interest, profit) earned in production.
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Expenditure Method: Measures total spending on final goods/services (e.g., consumer + government spending).
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Circular Income: Describes the flow of income between households and firms, not a measurement method.