Net factor income from abroad is taken into account when national income is calculated by:

Ans – (d)

Explanation:-

All three methods are meant to calculate domestic income.

By adding Net Factor income from abroad into it, we get National Income.

it would be more clear from following formulas:

Value-added Method Formula to Calculate National Income

GDP at MP = Value of output – Intermediate Consumption

NDP at FC (Domestic Income) = GDP at MP – Depreciation – Net Indirect taxes

National Income (NNP at FC) = NDP at FC + Net Factor income from abroad.

Income Method Formula to Calculate National Income

NDP at FC = Compensation of Employee + Mixed Income + Rent (Royalty) + Interest + Profit

National Income (NNP at FC) = NDP at FC + Net Factor Income from abroad

Expenditure Method to Calculate National Income

NDP at MP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Net Domestic Capital Formation + Net Exports

National Income (NNP at FC) = NDP at MP – Net Indirect taxes + Net Factor income from abroad