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Following are the steps to… (Class 12 Economics 2026, Q5)

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EconomicsCBSE Class 12 · Board exam 2026, set 58/5/1 · 1 mark · MCQ

CBSE Class 12 Economics 2026: question 5

Set in the CBSE Class 12 board exam of 2026, paper 58/5/1, section A, question 5, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q5 · 1 mark · MCQNational Income Accounting

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

  1. (A)(ii), (iii), (i), (iv)
  2. (B)(iv), (ii), (i), (iii)
  3. (C)(iv), (ii), (iii), (i)
  4. (D)(iii), (iv), (ii), (i)

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 58/5/1.

Hints

Open one hint at a time and try again before the next.

Hint 1

You must classify the producing units before adding anything.

Hint 2

Domestic income comes before national income.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Value-added method order: first identify and classify producing units into primary, secondary and tertiary sectors (iv); then add the gross value added of all firms to get GDP at market price (ii).

  2. Next subtract depreciation and net indirect taxes to get NDP at factor cost (i); finally add net factor income from abroad to get NNP at factor cost (iii). Order: (iv), (ii), (i), (iii). Option (B).

    1 mark

Answer: (B) (iv), (ii), (i), (iii)

Where the marks are

  • Correct sequence of steps (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from National Income Accounting, one at a time, marked against the answer key and marking points.Back to the full paper2026 board paper, set 58/5/1: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.