If NDP at market price is ₹17,200 crore and NDP at factor cost is ₹17,650 crore, what will be the net indirect taxes?
Answer and explanation
Correct answer: −₹450 करोड़
For comparable NDP measures, net indirect taxes = NDP at market price − NDP at factor cost. Substitution gives ₹17,200 − ₹17,650 = −₹450 crore. Therefore option B is correct. The negative result means subsidies exceed indirect taxes by ₹450 crore. A positive ₹450 crore would result from reversing the subtraction, while zero would incorrectly assume the two measures are equal.
Frequently asked questions
What is the correct answer to this question?
−₹450 करोड़
Why is this the correct answer?
For comparable NDP measures, net indirect taxes = NDP at market price − NDP at factor cost. Substitution gives ₹17,200 − ₹17,650 = −₹450 crore. Therefore option B is correct. The negative result means subsidies exceed indirect taxes by ₹450 crore. A positive ₹450 crore would result from reversing the subtraction, while zero would incorrectly assume the two measures are equal.
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.
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