If GDP at factor cost is ₹9,200 crore and net indirect taxes are ₹800 crore what will be GDP at market price?
Answer and explanation
Correct answer: ₹10,000 crore
To move from factor cost to market price, add net indirect taxes. The formula is GDP at market price = GDP at factor cost + net indirect taxes. Thus, ₹9,200 crore + ₹800 crore = ₹10,000 crore, so option C is correct. Option A subtracts the taxes, option B ignores them, and option D adds too much by treating the adjustment as ₹1,600 crore.
Frequently asked questions
What is the correct answer to this question?
₹10,000 crore
Why is this the correct answer?
To move from factor cost to market price, add net indirect taxes. The formula is GDP at market price = GDP at factor cost + net indirect taxes. Thus, ₹9,200 crore + ₹800 crore = ₹10,000 crore, so option C is correct. Option A subtracts the taxes, option B ignores them, and option D adds too much by treating the adjustment as ₹1,600 crore.
Which subject and chapter does this question cover?
This is a Class 12 Economics question. Chapter: National Income and Related Aggregates. Topic: Aggregates related to national income - Market price and factor cost.
Student feedback
Was this question useful?
👍 0 Helpful 👎 0 Not helpful
Yes 0% No 0%
0 responsesStudent Reviews
No published reviews yet.
