If net indirect taxes are negative ₹45 crore and subsidies are ₹125 crore, what are the indirect taxes?
Answer and explanation
Correct answer: ₹80 crore
The governing relation is Net Indirect Taxes = Indirect Taxes − Subsidies. Let indirect taxes be T. Given net indirect taxes are −₹45 crore and subsidies are ₹125 crore: T − 125 = −45. Adding 125 to both sides gives T = 80. Therefore, indirect taxes are ₹80 crore, so option B is correct. Option D incorrectly adds the absolute values of the negative net tax and subsidy.
Frequently asked questions
What is the correct answer to this question?
₹80 crore
Why is this the correct answer?
The governing relation is Net Indirect Taxes = Indirect Taxes − Subsidies. Let indirect taxes be T. Given net indirect taxes are −₹45 crore and subsidies are ₹125 crore: T − 125 = −45. Adding 125 to both sides gives T = 80. Therefore, indirect taxes are ₹80 crore, so option B is correct. Option D incorrectly adds the absolute values of the negative net tax and subsidy.
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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