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The output approach to measuring national income is based on the computation of

The output approach to measuring national income is based on the computation of

  • A.
    final output
  • B.
    factor cost
  • C.
    value added
  • D.
    profits earned
Correct Answer: Option C
Explanation

The output approach measures national output called gross domestic products (GDP) in terms of the values added by each of the sectors of the economy.