If indirect taxes are ₹1,300 crore and net indirect taxes are minus ₹250 crore, what will be subsidies?
Answer and explanation
Correct answer: ₹1,550 crore
Use net indirect taxes = indirect taxes − subsidies. Let subsidies be S. Then −₹250 = ₹1,300 − S. Rearranging gives S = ₹1,300 + ₹250 = ₹1,550 crore. Hence option C is correct. The negative net figure shows that subsidies exceed indirect taxes by ₹250 crore; ₹1,050 crore would instead produce a positive net tax of ₹250 crore.
Frequently asked questions
What is the correct answer to this question?
₹1,550 crore
Why is this the correct answer?
Use net indirect taxes = indirect taxes − subsidies. Let subsidies be S. Then −₹250 = ₹1,300 − S. Rearranging gives S = ₹1,300 + ₹250 = ₹1,550 crore. Hence option C is correct. The negative net figure shows that subsidies exceed indirect taxes by ₹250 crore; ₹1,050 crore would instead produce a positive net tax of ₹250 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.
