If indirect taxes are ₹85 crore and subsidies are ₹25 crore, what are the net indirect taxes?
Answer and explanation
Correct answer: ₹60 crore
Net indirect taxes are defined as indirect taxes minus subsidies. Applying the definition, NIT = ₹85 crore − ₹25 crore = ₹60 crore. Option C results from adding the two amounts, while options B and D use only one component and therefore do not represent the net figure. Thus, option A is correct.
Frequently asked questions
What is the correct answer to this question?
₹60 crore
Why is this the correct answer?
Net indirect taxes are defined as indirect taxes minus subsidies. Applying the definition, NIT = ₹85 crore − ₹25 crore = ₹60 crore. Option C results from adding the two amounts, while options B and D use only one component and therefore do not represent the net figure. Thus, option A is correct.
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.
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