Which of the following is the INCORRECT sequence of national income from broader to narrower concepts?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. GNP at market prices - NNP at factor cost-NNP at market prices-GNP at factor cost.
The sequence "GNP at market prices - NNP at factor cost - NNP at market prices - GNP at factor cost" is incorrect for showing a progression from broader to narrower national income concepts.
The correct progression generally moves from Gross to Net, and Market Price to Factor Cost. A more logical sequence would involve adjusting for depreciation (Gross to Net) and then indirect taxes/subsidies (Market Price to Factor Cost). The given sequence mixes these adjustments illogically.