Income Method The income approach of measuring national income considers all the payments made to

the factors of production to arrive at a national income figure. Therefore, it is also called the factor
payment method. The household sector provide factors of production like land, labor, capital and
organization to produce goods and services. For this, they are paid in terms of rent, wages and salaries,
interest and profits. If we sum up all these values we get the GDP of the country. GDP = Rent + Wages
and Salaries+Interest + Profits + Depreciation + Net indirect taxes GNP=GDP+Netfactor income from
abroad NNP=GNP-Depreciation NI = NNP- Net Indirect Taxes