Question

Arrange the following statements in the context of calculating Gross National Product (GNP) at Market Price: \[ (A)\ \text{Add Net Factor Income from Abroad} \] \[ (B)\ \text{Calculate value of output} \] \[ (C)\ \text{Determine total sales in the country} \] \[ (D)\ \text{Deduct intermediate consumption} \]

• A. BDCA
• B. DCBA
• C. BCDA
• D. ABCD

Hint:

To calculate GNP at Market Price, first calculate domestic production and then add Net Factor Income from Abroad: \[ GNP_{MP} = GDP_{MP} + NFIA \]

Answer 1

The Correct Option is C

Concept:
Gross National Product at Market Price measures the value of final goods and services produced by the normal residents of a country, including net factor income from abroad. To calculate GNP at Market Price, we first calculate domestic output and then add net factor income from abroad. The basic relation is: \[ GNP_{MP} = GDP_{MP} + NFIA \] where, \[ GNP_{MP} = \text{Gross National Product at Market Price} \] \[ GDP_{MP} = \text{Gross Domestic Product at Market Price} \] \[ NFIA = \text{Net Factor Income from Abroad} \]

Step 1: Calculate value of output.
The first step is to calculate the value of output produced in the economy. So, the first statement is: \[ (B) \]

Step 2: Determine total sales in the country.
After calculating the value of output, we determine the total sales or market value of output in the country. So, the second statement is: \[ (C) \]

Step 3: Deduct intermediate consumption.
Intermediate goods are goods used in the production of final goods. To avoid double counting, intermediate consumption must be deducted. So, the third statement is: \[ (D) \]

Step 4: Add Net Factor Income from Abroad.
After calculating domestic product, Net Factor Income from Abroad is added to convert domestic product into national product. So, the last statement is: \[ (A) \] Therefore, the correct order is: \[ B \rightarrow C \rightarrow D \rightarrow A \] Hence, \[ \boxed{\text{BCDA}} \]