Question

Arrange the following statements in the context of calculating Gross National Product (GNP) at Market Price:

• [(A)] Add Net Factor Income from Abroad
• [(B)] Calculate value of output
• [(C)] Determine total sales in the country
• [(D)] Deduct intermediate consumption

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

Hint:

Remember:

• Value Added: \[ \text{Output} - \text{Intermediate Consumption} \]
• GNP at Market Price: \[ GDP + \text{Net Factor Income from Abroad} \]
• NFIA converts: \[ \text{Domestic Product} \rightarrow \text{National Product} \]

Answer 1

The Correct Option is C

Concept: Gross National Product (GNP) at Market Price is calculated by first determining domestic production and then adding net factor income from abroad. The sequence follows the value added method.

Step 1: Calculate value of output. First, we estimate: \[ \text{Value of Output} \] This includes the total value of goods and services produced. Thus: \[ (B) \text{ comes first} \]

Step 2: Determine total sales in the country. Next, total sales or gross value generated in the economy is determined. Thus: \[ (C) \text{ comes after } (B) \]

Step 3: Deduct intermediate consumption. To avoid double counting: \[ \text{Intermediate Consumption} \] is deducted to obtain value added. Thus: \[ (D) \text{ comes next} \]

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