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Economy question from FAA exam, 2022 by JKSSB

Among the given methods, which approach is used to measure national income by summing up the flow of factor incomes received by labor, capital, land and entrepreneurship?

Last updated May 13, 2026
Correct Answer: Option D — Income approach
The Four Factors of Production and Their Incomes
In this approach, the economy is viewed from the perspective of the earners. The total value of goods and services produced must be equal to the total income distributed to those who helped produce them.

Labor: Receives Wages and Salaries (Compensation of Employees).

Land: Receives Rent.

Capital: Receives Interest.

Entrepreneurship: Receives Profit
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.

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JKSSB FAA 2022

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Exam JKSSB
Recruitment FAA
Year 2022
Subject Economy
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