The GDP estimation method measuring the aggregate value of factor payments is called ___________.

The correct answer is income method.

Key Points 

• The income method is one of the three methods used to estimate a country's Gross Domestic Product (GDP), the other two being the expenditure method and the production or value-added method. 
• The income method measures the total income earned by all factors of production in a country, including wages, salaries, profits, and rent.
• The income method is also known as the factor income approach because it calculates the GDP by adding up the income earned by all the factors of production involved in producing goods and services.
• The income method is particularly useful for measuring the GDP of countries where most economic activity is in the form of services rather than goods production.

Additional Information

• The product method calculates GDP, which measures the total value of goods and services produced in a country over a certain period.
• The value-added method is a method of calculating GDP that measures the value added at each stage of production in a country.
• The expenditure method calculates GDP and measures the total amount households, businesses, and government spend on goods and services in a country. Solution Statement: As per the given statement,