Given below are the steps for calculation of National Income by value added method. Place them in the correct sequence.

(A) Estimate Gross Domestic Product at market price

(B) Calculate Net Domestic Product at factor cost

(C) Estimation of value of output produced by each firm in all sectors of the economy during the year

(D) Calculate Net National Product at factor cost

Choose the correct answer from the options given below :

Question

Accepted Answer

(C), (A), (B), (D)

Answer

(A), (B), (C), (D)

Answer

(B), (C), (D), (A)

Answer

(D), (A), (C), (B)

List-I	List-II
(A) GVA at Market Prices	(I) GVA at basic prices - Net Production Taxes
(B) GVA at basic prices	(II) NNPMP - Net Product Taxes - Net Production Taxes
(C) GVA at factor cost	(III) GDP at market prices
(D) National Income (NI)	(IV) GVAMP - Net Product Taxes

List-I	List-II
(A) GDP at constant price	(i) known as Nominal GDP
(B) GDP at current price	(ii) Increases only when there is increase in the quantum of output in the economy.
(C) Welfare of the people	(III) known as earned income
(D) Factor income	(IV) Measured in terms of the availability of goods and services

Solution