22_09_08

Production or value added method

 Production or Value Added Method 

Simon Kuznets has defined this method as Goods Service Method.  Under this method, the net monetary value of final goods and services produced in the country in a year is determined and its sum is called Final Product Total.


It actually shows the Gross Domestic Product (GDP).  National income is actually the net national product at factor cost.  To calculate this, net income earned from abroad is added to the value of GDP and depreciation is subtracted. 
☆income method☆

 Intermediate Consumption It refers to the value of non-factor inputs.  All those inputs which are in addition to the causal inputs of land, labour, capital and entrepreneur are non-causal inputs.