Macro

National Income

Medium

Arrange the following steps in calculation of national income, by income method in correct sequence.

(A) Add net factor income from abroad to arrive at national income.

(B) Estimate the factor income paid by each sector.

(C) Identify and classify the income generating units.

(D) Calculating domestic factor income.

Choose the correct answer from the options given below:

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

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

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

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

✅ Correct Option: 4

Option 1 -> Incorrect sequence - starts with calculating domestic income before identifying units.

Option 2 -> Incorrect sequence - estimates factor income before identifying the units.

Option 3 -> Incorrect sequence - adds net factor income from abroad before calculating domestic factor income.

Option 4 -> Correct logical sequence following the income method steps.

Hence, Option 4: (C), (B), (D), (A) -> The income method follows a systematic approach: First, identify and classify income generating units like households, firms, government (C). Second, estimate factor incomes (wages, rent, interest, profit) paid by each sector (B). Third, sum all factor incomes to calculate domestic factor income (D). Finally, add net factor income from abroad (NFIA = factor income from abroad - factor income to abroad) to arrive at National Income (A). This sequence ensures proper computation: NI = Domestic Factor Income + NFIA. -> correct

2025: 21 May Shift 1

Arrange the following in order as per Income method of measuring national Income.

(A) Classifying the production units into primary, secondary and tertiary sector on the basis of their occupational activities

(B) Adding the net factor income from abroad.

(D) Finding the factor payments made by each production unit and classifying it into compensation of employees, operating surplus and mixed income.

Choose the correct answer from the options given below:

2025: 26 May Shift 2

Which of the following statements is true?

(A) Gross domestic income is a subset of national income.

(B) Corporate profit tax is a factor in income earned by the government.

(C) The production of wheat by a farmer retained by himself for his self-consumption will be included in the national income of the country.

(D) All capital goods are producer goods, but all producer goods are not necessarily capital goods.

Choose the correct answer from the options given below:

2025: 29 May Shift 1

Which of the following is a stock variable?

2023: 20 June Shift 1

Calculate operating surplus from the following.

		(Rs in Cr)
a	Rent & Interest	50
b	Bonus	80
c	Profit After Tax	30
d	Tax rate	40%

Choose the correct option.

2025: 30 May Shift 1

Match List-I with List-II

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

Choose the correct answer from the options given below:

2025: 31 May Shift 1

Calculate Net National Product at factor cost (NNP $_{FC}$ ).

Rs. 3000 crores
Rs. 3137 crores
Rs. 3140 crores
Rs. 3500 crores

Solution

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