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If net indirect taxes fall from ₹160 crore to negative ₹40 crore, what is the total change?

Answer and explanation

Correct answer: ₹200 crore decrease

The governing relation is that net indirect taxes equal the difference between market price and factor cost, and the numerical change must be calculated as final value minus initial value. Here, change = (-₹40 crore) − ₹160 crore = -₹200 crore. The negative sign means a decrease of ₹200 crore, so option C is correct. ₹120 crore would result from ignoring the negative final value.

Related tags

Net Indirect TaxesMarket PriceFactor CostSign ConventionNational IncomeGdp And WelfareNational Income And Related AggregatesEconomics

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