Arrange the following in order as per income method of measuring national income.

(A) Classifying the production units into primary, secondary and tertiary sector on the basis of their occupational activities
(B) Adding the net factor income from abroad.
(C) Determination of domestic income.
(D) Finding the factor payments made by each production unit and classifying it into compensation of employees, operating surplus and mixed income.

Choose the correct answer from the options given below:

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

The correct answer is Option (1) → (A), (D), (C), (B)

(A) Classifying the production units into primary, secondary and tertiary sector on the basis of their occupational activities – This is the first step in the income method to identify and group all production units.

(D) Finding the factor payments made by each production unit and classifying it into compensation of employees, operating surplus and mixed income – This is the second step, where income generated by each sector is measured.

(C) Determination of domestic income – In this third step, all factor incomes within the domestic territory are added to get domestic income (NDP at factor cost).

(B) Adding the net factor income from abroad – Finally, in the fourth step, Net Factor Income from Abroad (NFIA) is added to obtain National Income (NNP at factor cost).