Arrange the following steps of calculating National Income by value added method in the proper sequence.

(A) Calculate Gross value of output
(B) Calculate Gross value added
(C) Calculate value of output in Primary, Secondary and Tertiary sector
(D) Calculate National Income

Choose the correct answer from the options given below :

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

The correct answer is (C), (A), (B), (D).

The value added method is one of the three methods used to calculate national income. The method involves calculating the gross value added (GVA) at each stage of production, and then summing the GVA of all sectors to get the gross domestic product (GDP). Finally, GDP is adjusted for net factor income from abroad (NFIA) to get national income.

Here is the correct sequence of steps:

1. Calculate value of output in Primary, Secondary and Tertiary sector (C): This involves identifying the different sectors of the economy and calculating the total value of output produced by each sector.

2. Calculate Gross value of output (A): This involves adding the value of intermediate consumption to the value of output. Intermediate consumption is the value of goods and services used up in the production process.

3. Calculate Gross value added (B): This involves subtracting the value of intermediate consumption from the gross value of output. GVA is the value of a good or service that is added at each stage of production.

4. Calculate National Income (D): This involves adding GVA from all sectors and then adjusting for NFIA. NFIA is the income earned by domestic residents from abroad minus the income earned by foreign residents in the domestic economy.