Arrange the steps to calculate Net National Product at market Price by Income Method.

(A) Identify and add factor Income (Rent, wages, interest and profit).
(B) Add Net factor income from abroad.
(C) Add Net Indirect Taxes.
(D) Add mixed income of self-employed.

Choose the correct answer from the options given below:

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

The correct answer is Option (2) → (A), (D), (C), (B)

To calculate Net National Product at Market Price (NNPMP) using the Income Method, follow these steps:

• (A) Identify and add factor income (rent, wages, interest, profit). These are the primary incomes earned by factors of production.

• (D) Add mixed income of self-employed. This is included because the self-employed earn a combination of rent, wages, and profit. We will get Net Domestic Product at Factor Cost ($ND{P}^{FC}$).

• (C) Add net indirect taxes. To convert from factor cost to market price, we add Net Indirect Taxes (Indirect Taxes – Subsidies). This yields Net Domestic Product at Market Price ($ND{P}^{MP}$).

• (B) Add Net Factor Income from Abroad (NFIA). To convert from domestic income to national income, we add NFIA. This gives us Net National Product at Market Price ($NN{P}^{MP}$).