Question

Arrange the following steps of calculation of National Income in sequence: (A) Deduction of intermediate cost
(B) Estimation of value of output
(C) Add net factor income from abroad
(D) Deduction of depreciation and NIT

• A. (A), (B), (C), (D)
• B. (A), (C), (B), (D)
• C. (B), (A), (D), (C)
• D. (C), (D), (A), (B)

Hint:

National Income (NNP\textsubscriptFC) = Value of Output – Intermediate Cost – Depreciation – NIT + NFIA.

Answer 1

The Correct Option is C

Step 1: National Income Calculation (Product Method).
1. Begin with Gross Value of Output (B).
2. Subtract intermediate consumption to determine Gross Value Added (A).
3. Deduct depreciation and net indirect taxes (NIT) to yield NDP\textsubscript{FC} (D).
4. Add Net Factor Income from Abroad (NFIA) to reach NNP\textsubscript{FC} (C), representing National Income.
Step 2: Sequence Arrangement.
The calculated sequence is: (B) → (A) → (D) → (C).
Final Answer: \[\boxed{(B), (A), (D), (C)}\]