Question

Arrange the following steps involved in calculation of National Income by Income Method in proper sequence:
A. Estimation of Net Factor Income from Abroad
B. Classification of Factor Income
C. Estimation of Domestic Income
D. Identification and Classification of Producing Enterprises
E. Estimation of National Income

• A. B, D, C, A, E
• B. A, B, D, C, E
• C. E, A, C, D, B
• D. D, B, C, A, E

Hint:

Logic Tip: National Income = Domestic Income + Net Factor Income from Abroad.

Answer 1

The Correct Option is D

Step 1:
The first step is identifying and classifying all producing enterprises. \[ D = \text{First Step} \]

Step 2:
Different factor incomes like wages, rent, interest, and profit are classified. \[ B = \text{Second Step} \]

Step 3:
After classification, domestic income is estimated. \[ C = \text{Third Step} \]

Step 4:
Net Factor Income from Abroad is added to domestic income to estimate national income. Correct sequence: \[ D,\; B,\; C,\; A,\; E \] Hence, the correct answer is: \[ \boxed{\text{(4) D, B, C, A, E}} \]