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Economics · 2026 · 1 mark
National Income AccountingCircular Flow of Income and Methods of Calculating National Income1 markUnderstandmcq
CBSE 2026 · Region 5 · Set 1 · Q5
Following are the steps to measure National Income (NNP_FC ) by Value Added method: (i) Calculate Domestic Income (NDP_FC ) by subtracting…
Following are the steps to measure National Income (NNP$\displaystyle _{FC}$) by Value Added method :
(i)
Calculate Domestic Income (NDP$\displaystyle _{FC}$) by subtracting Depreciation and Net Indirect Taxes from GDP$\displaystyle _{MP}$.
(ii)
Estimate GDP$\displaystyle _{MP}$ by adding GVA of each firm.
(iii)
Estimate and add Net Factor Income from Abroad to NDP$\displaystyle _{FC}$ to arrive at NNP$\displaystyle _{FC}$.
(iv)
Identify and classify the production units into primary, secondary and tertiary sector.
The correct order of arrangement of steps would be :
(Choose the correct option)
Official answer
(B)
(iv), (ii), (i), (iii)
Marking-scheme solution
(B) (iv), (ii), (i), (iii)
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CBSE Class 12 Economics past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.