If NDP at factor cost is ₹2,150 crore and net indirect taxes are ₹185 crore, what is NDP at market price?
Answer and explanation
Correct answer: ₹2,335 crore
To move from factor cost to market price, the governing rule requires adding net indirect taxes: NDP at market price = NDP at factor cost + net indirect taxes. Substituting the data gives ₹2,150 + ₹185 = ₹2,335 crore. Therefore, option C is correct. Option A incorrectly subtracts the tax, option B makes no adjustment, and option D adds the amount twice or uses an incorrect base.
Frequently asked questions
What is the correct answer to this question?
₹2,335 crore
Why is this the correct answer?
To move from factor cost to market price, the governing rule requires adding net indirect taxes: NDP at market price = NDP at factor cost + net indirect taxes. Substituting the data gives ₹2,150 + ₹185 = ₹2,335 crore. Therefore, option C is correct. Option A incorrectly subtracts the tax, option B makes no adjustment, and option D adds the amount twice or uses an incorrect base.
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.
