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NextQ86

Read the following statements carefully : Statement I : Positive externalities refer to the benefits a firm/an individual provides to another for which they are paid. Statement II : In case of positive externalities, Gross Domestic Product (GDP) of an economy might lead to an overestimation of the actual welfare. In the light of the given statements, choose the correct option from the following :

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Question 85

Following are the steps to measure National Income (NNP_FC) by Value Added method : (i) Calculate Domestic Income (NDP_FC) by subtracting Depreciation and Net Indirect Taxes from GDP_MP. (ii) Estimate GDP_MP by adding GVA of each firm. (iii) Estimate and add Net Factor Income from Abroad to NDP_FC to arrive at NNP_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)

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