With reference to the National Income at Factor Cost, consider the following statements:

1. It means the sum of all incomes earned by the citizens in the form of Rent, Wages, Interest and Profits.

2. While calculating National Income, we must deduct indirect taxes and add subsidies into Net National Product at Market Price.

Which of the above statement is/are correct?

1
1 only
2
2 only
3
Both 1 and 2
4
Neither 1 nor 2

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