JAMB Economics 2019 Paper

Concept:The income approach measures national income by adding up all payments made to factors of production.Explanation:Factors of production earn rewards for their contribution to production.Land earns rent, capital earns interest, labour earns wages and salaries, and entrepreneurship earns profit.In the income approach to national income, these rewards are summed up as:$$R + I + W + P$$where $R$ is rent, $I$ is interest, $W$ is wages and salaries, and $P$ is profit.This total represents the income received by all factors of production in an economy.The expenditure approach instead sums total spending, while the output approach sums the value of all final goods and services produced.Therefore, the method that adds all factor rewards is the income approach.Answer:A. income approach