Question

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

Answer 1

Step 1 - add compensation to employees, operating surplus and mixed income.

this will give you NDP(fc)

Step 2 - add net factor income from abroad to NDP(fc)

this will give you NNP(fc) which is nothing but national income.

hope this helps.....

Answer 2

answer

step 1 add compensation to employee operating surplus and mixed income

this will give you NDPfc

step 2 add net factor income from aboard to NDPfc