If indirect taxes are ₹1,050 crore and subsidies are ₹300 crore, what will be net indirect taxes?
Answer and explanation
Correct answer: ₹750 crore
Net indirect taxes measure the excess of indirect taxes over subsidies. The governing formula is Net indirect taxes = Indirect taxes − Subsidies. Hence, Net indirect taxes = ₹1,050 crore − ₹300 crore = ₹750 crore. Therefore, option B is correct. Option C ignores the subsidy, option D adds the subsidy instead of subtracting it, and option A contains an incorrect subtraction.
Frequently asked questions
What is the correct answer to this question?
₹750 crore
Why is this the correct answer?
Net indirect taxes measure the excess of indirect taxes over subsidies. The governing formula is Net indirect taxes = Indirect taxes − Subsidies. Hence, Net indirect taxes = ₹1,050 crore − ₹300 crore = ₹750 crore. Therefore, option B is correct. Option C ignores the subsidy, option D adds the subsidy instead of subtracting it, and option A contains an incorrect subtraction.
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 - NDP.
Student feedback
Was this question useful?
👍 0 Helpful 👎 0 Not helpful
Yes 0% No 0%
0 responsesStudent Reviews
No published reviews yet.
