Arrange the following in correct sequence for calculating National Income.

(A) Add Net Factor income from aboard.
(B) Deduct value of Intermediate Goods.
(C) Calculate the value of output.
(D) Deduct Depreciation and NIT.

Choose the correct answer from the options given below:

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

The correct answer is Option (4) → (C), (B), (D), (A)

• (C) Calculate the value of output. This is the initial step: calculating the total value of goods and services produced by an enterprise or a sector (Sales + Change in Stock).

• (B) Deduct value of Intermediate Goods. To avoid double counting, subtract Intermediate Consumption to get Gross Value Added (GVA) or Gross Domestic Product at Market Price ($GD{P}^{MP}$).

• (D) Deduct Depreciation and NIT. To move from Gross Domestic Product at Market Price ($GD{P}^{MP}$) to Net Domestic Product at Factor Cost ($ND{P}^{FC}$), we deduct Depreciation (to go from Gross to Net) and Net Indirect Taxes (NIT) (to go from Market Price to Factor Cost).

• (A) Add Net Factor income from abroad (NFIA). Finally, to get from Domestic Income ($ND{P}^{FC}$) to National Income ($NN{P}^{FC}$), you add Net Factor Income from Abroad (NFIA).