Consider the following as steps in the estimation of National Income of an economy by product value added method. Arrange them in proper sequence.

A. Add net factor income from abroad (NFIA).

B. Calculate cost of secondary inputs of all the sectors.

C. Determine Net Value added at factor cost.

D. Determine Gross Value Added.

E. Calculate value of output of all the sectors.

Choose the correct answer from the options given below :

E, B, D, C, A

The correct answer is option (2) : E, B, D, C, A

1, Calculate value of output of all the sectors (E) : This step involves determining the total value of goods and services produced by all sectors.

2. Calculate cost of secondary inputs of all the sectors (B) : This step involves determining the cost of secondary inputs used in the production process across all sectors.

3. Determine Gross Value Added (D) : Gross Value Added is calculated by subtracting the cost of secondary inputs from the total value of output (E - B).

4. Determine Net Value Added at factor cost (C) : Net Value Added at factor cost is obtained by subtracting depreciation and indirect taxes from Gross Value Added.

5. Add net factor income from abroad (NFIA) (A) : Finally, Net Factor Income from Abroad (NFIA) is added to account for the income earned or paid to foreigners.

The correct sequence is 2. E, B, D, C, A