If subsidies are ₹90 crore and indirect taxes are ₹55 crore, what will be the value of net indirect taxes?
Answer and explanation
Correct answer: Negative ₹35 crore
The formula is NIT = Indirect Taxes − Subsidies. Therefore, NIT = ₹55 crore − ₹90 crore = −₹35 crore. Because subsidies exceed taxes, the result is negative. Option A has the correct numerical difference but omits the negative sign; options C and D incorrectly add the two figures. Hence option B is correct.
Frequently asked questions
What is the correct answer to this question?
Negative ₹35 crore
Why is this the correct answer?
The formula is NIT = Indirect Taxes − Subsidies. Therefore, NIT = ₹55 crore − ₹90 crore = −₹35 crore. Because subsidies exceed taxes, the result is negative. Option A has the correct numerical difference but omits the negative sign; options C and D incorrectly add the two figures. Hence option B 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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