Which of the following is NOT a correct statement in the context of National income?
Net factor income from abroad has to be added to gross domestic product at market price for getting the national income
The correct approach to calculate National Income is:
National Income = Net Domestic Product at Factor Cost + Net Factor Income from Abroad
Incorrect statement: Option 3 suggests that we add net factor income from abroad to GDP at market price, which is incorrect. We need to add it to Net Domestic Product (NDP) at factor cost, not GDP at market price.
Thus, option 3 is the incorrect statement.
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