Production (output) method:
- The sum of monetary value of finished goods and services produced in agriculture, industries and service sector in a country is called the national income of that country.
- Thus, National income – (Production in agriculture + Production in industries + Production in service sector) x Market value
- This method of calculating national income has been developed from the definition given by Prof. Marshall.
Classification of economy in different sectors:
To obtain the national income the economy is classified into various sectors like agriculture, industries, services, mines, construction, manufacturing, trade-commerce, transportation, communication, banking, education, etc.
