If taxes and subsidies are both ₹200 crore, what will be net indirect taxes?
Answer and explanation
Correct answer: ₹0
Net indirect taxes are calculated as indirect taxes minus subsidies. Here, net indirect taxes = ₹200 crore − ₹200 crore = ₹0. Therefore option C is correct. The amounts cancel because the tax and subsidy are equal. Option A counts only the tax, option B incorrectly adds the two amounts, and option D has no basis in the given figures.
Frequently asked questions
What is the correct answer to this question?
₹0
Why is this the correct answer?
Net indirect taxes are calculated as indirect taxes minus subsidies. Here, net indirect taxes = ₹200 crore − ₹200 crore = ₹0. Therefore option C is correct. The amounts cancel because the tax and subsidy are equal. Option A counts only the tax, option B incorrectly adds the two amounts, and option D has no basis in the given figures.
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.
