Muft Shiksha™ एक 100% Free Education Portal है 🇮🇳, जिसका उद्देश्य Class 9–12 के हर विद्यार्थी तक High-Quality Education को पूरी तरह मुफ्त पहुँचाना है। 🇮🇳 हम मानते हैं कि अच्छी शिक्षा किसी student की आर्थिक स्थिति पर निर्भर नहीं होनी चाहिए। 🇮🇳 हर विद्यार्थी को वही Quality Study Material, MCQs, Quizzes, Exam Preparation, Concept-Based Learning और Bilingual Support मिलना चाहिए, जो आमतौर पर महंगी Coaching या Premium Platforms में मिलता है। Muft Shiksha™ 🇮🇳 इसी सोच के साथ बनाया गया है
SubjectsEconomics
राष्ट्रीय आय से संबंधित समुच्चय: बाजार मूल्य और साधन लागत
In this Class 12 Economics topic from National Income and Related Aggregates, students learn how national income measures are expressed at market price and factor cost. The topic explains the role of net indirect taxes, including indirect taxes and subsidies, in converting one valuation to the other. Students also connect these concepts with aggregates such as GDP, NDP, GNP and NNP, helping them interpret national income data and apply the relevant relationships in numerical questions.
TOPIC PRACTICE
Up to 22 questions from this page. Select your focus, then start.
The governing calculation is to add 7.5% of the given market-price output because factor cost is stated to be higher than market price. 7.5% of ₹6,800 crore = 0.075 × 6,800 = ₹510 crore. Hence factor cost = ₹6,800 + ₹510 = ₹7,310 crore, so option C is correct. The lower figure reverses the stated direction, and the other figures use incorrect additions.
The governing relation is MP − FC = net indirect taxes = indirect taxes − subsidies. First, net indirect taxes = ₹4,600 − ₹4,310 = ₹290 crore. Therefore subsidies = indirect taxes − net indirect taxes = ₹380 − ₹290 = ₹90 crore. Option B is correct. ₹290 crore is the net indirect tax, not the subsidy; the other options do not satisfy the relation.
The governing formula is market price = factor cost + indirect taxes − subsidies. Indirect tax equals 18% of ₹1,200, or 0.18 × 1,200 = ₹216. Thus market price = ₹1,200 + ₹216 − ₹40 = ₹1,376. Option B is correct. Adding the subsidy instead would give an incorrect higher amount, while the other options result from arithmetic or sign errors.
The governing identity is factor cost = market price − net indirect taxes. Net indirect taxes are 15% of ₹4,000 crore: 0.15 × 4,000 = ₹600 crore. Therefore factor cost = ₹4,000 − ₹600 = ₹3,400 crore, making option B correct. ₹600 crore is the tax amount, not factor cost, and ₹4,600 crore incorrectly adds the tax to market price.
The governing relation is market price = factor cost + net indirect taxes. Net indirect taxes equal 22% of ₹3,500 crore: 0.22 × 3,500 = ₹770 crore. Hence market price = ₹3,500 + ₹770 = ₹4,270 crore, so option C is correct. The smaller options use an incorrect percentage or addition, while ₹4,500 crore exceeds the correctly calculated amount.
The governing concept is net indirect taxes = indirect taxes − subsidies. Subsidies are 35% of ₹600 crore, so subsidies = 0.35 × 600 = ₹210 crore. Therefore net indirect taxes = ₹600 − ₹210 = ₹390 crore, making option C correct. ₹210 crore is only the subsidy amount; adding the two amounts, as in option D, violates the definition of net indirect taxes.
The governing relation is net indirect taxes = indirect taxes − subsidies. Since ₹280 crore represents 80% of indirect taxes, indirect taxes = ₹280 ÷ 0.80 = ₹350 crore. Therefore net indirect taxes = ₹350 − ₹280 = ₹70 crore, so option B is correct. ₹280 crore is the subsidy, and ₹350 crore is the indirect-tax amount; neither is the required net figure.
The governing concept is that the difference between market price and factor cost equals net indirect taxes. In the ratio 15:14, the 14 parts representing factor cost equal ₹5,600 crore, so one part is ₹400 crore. Market price is 15 parts, or ₹6,000 crore. Thus net indirect taxes = ₹6,000 − ₹5,600 = ₹400 crore, making option B correct.
The statement means market price = 112% of factor cost, or 4,480 = 1.12 × factor cost. Hence factor cost = 4,480 ÷ 1.12 = ₹4,000 crore, equivalently 4,480 × 100/112. Option D incorrectly multiplies by 1.12 instead of reversing the percentage. Options A and C do not satisfy the stated 112% relationship, because 112% of either amount is not ₹4,480 crore.
Here factor cost is 125% of market price. Let market price be x. Then 1.25x = 4,875, so x = 4,875 ÷ 1.25 = 4,875 × 100/125 = ₹3,900 crore. Therefore option B is correct. Option D comes from multiplying by 1.25 rather than finding the original base. Options A and C fail when multiplied by 125%, since they do not produce ₹4,875 crore.
The governing identity is GDP at factor cost = GDP at market price − net indirect taxes. Net indirect taxes equal 3/20 × 6,000 = ₹900 crore. Therefore GDP at factor cost = 6,000 − 900 = ₹5,100 crore. Option C subtracts an incorrect amount, while option D adds taxes instead of removing them. Option A is also inconsistent with the stated fraction. Hence option B is unambiguous.
Net indirect taxes equal indirect taxes minus subsidies. Let indirect taxes and subsidies be 9x and 4x respectively. Then 9x − 4x = 350, so 5x = 350 and x = ₹70 crore. Indirect taxes are therefore 9x = 9 × 70 = ₹630 crore. Option C is correct. ₹280 crore represents the subsidy amount, while the other values do not preserve the given ratio and net difference.
Because net indirect taxes = indirect taxes − subsidies, the negative value means subsidies are larger. Let taxes = 5x and subsidies = 9x. Then 5x − 9x = −240, so −4x = −240 and x = ₹60 crore. Subsidies are 9x = 9 × 60 = ₹540 crore. Option D is correct; ₹300, ₹420 and ₹480 crore do not produce the required ratio and negative difference.
The governing concept is change in value, calculated as new value minus old value. Here, change = (−₹60 crore) − ₹220 crore = −₹280 crore. The negative sign indicates a decrease, so net indirect taxes have fallen by ₹280 crore. Option A ignores the movement through zero, while option B treats the final negative value incorrectly. Therefore, option C is correct.
The governing identity is MP − FC = net indirect taxes, so the gap between market price and factor cost changes by the same amount as net indirect taxes. The change is ₹70 − (−₹110) = ₹180 crore. Because a negative amount is subtracted, the magnitudes add. Thus the gap increases by ₹180 crore. The other choices fail to account correctly for the initial negative value.
Since market price equals factor cost plus net indirect taxes, and factor cost is unchanged, any change in market price equals the change in net indirect taxes. The change is (−₹50) − ₹300 = −₹350 crore. Therefore, market price decreases by ₹350 crore. A ₹250 crore decrease would ignore the movement from a positive value to a negative one, so option C is correct.
The governing identity is FC = MP − NIT. With the same market price, the economy having the lower net indirect tax must have the higher factor cost. The second economy has taxes of ₹170 crore rather than ₹410 crore, a difference of ₹240 crore. Consequently, its factor cost is ₹240 crore higher. Therefore, option B is correct; the first economy’s larger tax reduces its factor cost relative to market price.
Net indirect taxes equal indirect taxes minus subsidies, and MP = FC + NIT. For the first firm, NIT = ₹150 − ₹45 = ₹105. For the second, NIT = ₹125 − ₹10 = ₹115. Since both firms have the same factor cost, the second firm’s market price is ₹115 − ₹105 = ₹10 higher. Therefore, option B is correct.
The governing relation is MP = FC + net indirect taxes, where net indirect taxes equal indirect taxes minus subsidies. Initially MP and FC are equal, so net indirect taxes are zero. Since indirect taxes rise by ₹25 crore and subsidies do not change, net indirect taxes become ₹25 crore. Therefore MP becomes ₹25 crore greater than FC, making option A correct; the other options reverse, ignore, or double the difference.
Use the aggregate-conversion sequence. First subtract depreciation from GDP at market price: NDP at market price = ₹5,600 − ₹420 = ₹5,180 crore. Next subtract net indirect taxes to move from market price to factor cost: NDP at factor cost = ₹5,180 − ₹310 = ₹4,870 crore. Thus option B is correct. ₹5,180 crore stops at NDP at market price, while the other values use an incorrect adjustment.
To convert GNP at factor cost into NNP at market price, first deduct depreciation to change gross into net: ₹6,400 − ₹480 = ₹5,920 crore, which is NNP at factor cost. Then add net indirect taxes to change factor cost into market price: ₹5,920 + ₹270 = ₹6,190 crore. Hence option C is correct. Option B omits the price-basis conversion, while A and D use incorrect arithmetic.
The GDP deflator compares the current-price value of domestic output with its value at base-year prices: Deflator = (Nominal GDP ÷ Real GDP) × 100. A value of 85 means the price level is 85% of the base-year level, so it is 15% lower. It does not directly mean that output fell or that nominal GDP is zero.
QUIZ COMPLETE
