Explain the steps involved in calculation of national income through i

1.	Explain the steps involved in calculation of national income through income method
Answer» 1. Classify the producing enterprises into industrial sectors like primary, secondary and tertiary. 2. Estimate the following factor income paid out by the producing units in each sector i.e. Compensation of employees Operating surplus *Mixed income of self-employed 3. Take the sum of the factor income by all the industrial sectors to arrive at the NDP_Fc (Which is called domestic income) 4. Add net factor income from abroad to the net domestic product at factor cost to arrive at the net national product at factor cost.

Explain the steps involved in calculation of national income through income method

Answer»

1. Classify the producing enterprises into industrial sectors like primary, secondary and tertiary.

2. Estimate the following factor income paid out by the producing units in each sector i.e.

*Compensation of employees

*Operating surplus

*Mixed income of self-employed

3. Take the sum of the factor income by all the industrial sectors to arrive at the NDP_Fc (Which is called domestic income)

4. Add net factor income from abroad to the net domestic product at factor cost to arrive at the net national product at factor cost.