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: Recall sequence of National Income (Product Method).
1. Start with Gross Value of Output (B).
2. Deduct intermediate consumption to get Gross Value Added (A).
3. Deduct depreciation and net indirect taxes (NIT) to get NDP\textsubscript{FC} (D).
4. Add Net Factor Income from Abroad (NFIA) to arrive at NNP\textsubscript{FC} (C), which is National Income.
Step 2: Arrange in order.
Thus, the sequence is: (B) → (A) → (D) → (C).
Final Answer: \[ \boxed{(B), (A), (D), (C)} \]