Macro

National Income

Medium

Arrange the steps to calculate Net National Product at market Price by Income Method.

(A) Identify and add factor Income (Rent, wages, interest and profit).

(B) Add Net factor income from abroad.

(C) Add Net Indirect Taxes.

(D) Add mixed income of self-employed.

Choose the correct answer from the options given below:

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

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

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

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

✅ Correct Option: 2

Option 1 -> Incorrect sequence as Net Indirect Taxes should not come before mixed income.

Option 2 -> Correct sequence: Factor incomes → Mixed income → Net Indirect Taxes → NFIA.

Option 3 -> Incorrect as NFIA should be added last, not first.

Option 4 -> Incorrect as Net Indirect Taxes should not come before mixed income.

Hence, Option 2: (A), (D), (C), (B) -> The correct sequence follows the Income Method: First, identify and add all factor incomes (Rent, Wages, Interest, Profit) which gives Domestic Income. Then add mixed income of self-employed to complete the factor cost calculation. Next, add Net Indirect Taxes to convert from factor cost to market price (giving NDP at Market Price). Finally, add Net Factor Income from Abroad to convert from domestic to national product, resulting in NNP at Market Price. -> correct

2025: 15 May Shift 1

Which of the following are used to estimate GDP by expenditure method?

(A) The final consumption expenditure on the goods and services produced by the firm.

(B) The expenditure that the government makes on the final goods and services produced by firm.

(D) The final investment expenditure

Choose the correct answer from the options given below:

2022: 30 Aug Shift 2

Which of the following components, is NOT a part of compensation of employees, while estimating national income ?

2026: 11 May Shift 1

Calculate the value of net exports

2025: 22 May Shift 2

Who among the following is called as the founding father of modern economics.

2023: 20 June Shift 1

Final goods are those goods.

2025: 13 May Shift 1

Arrange the following steps of calculation of National income in sequence.

(A) Deduction of intermediate cost

(B) Estimation of value of output

(D) Deduction of depreciation and NIT

Choose the correct answer from the options given below:

Solution

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