Arrange the following steps of estimation of National Income by income method in the proper sequence.

(A) Identification and classification of producing firms.
(B) Estimation of NDP_FC
(C) Estimation of NNP_FC.
(D) Classification of factor Income.

Choose the correct answer from the options given below:

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

The correct answer is Option (3) → (A), (D), (B), (C)

• (A) Identification and classification of producing firms. – First, firms engaged in production are identified and grouped by industry or sector.

• (D) Classification of factor income. – The various factor incomes (like wages, rent, interest, profit) paid by these firms are identified.

• (B) Estimation of NDP at Factor Cost (NDPFC). – By summing up all factor incomes from domestic production, we get Net Domestic Product at Factor Cost.

• (C) Estimation of NNP at Factor Cost (NNPFC). – Finally, Net Factor Income from Abroad (NFIA) is added to NDPFC to arrive at National Income or NNPFC.