NDP at factor cost is ₹760 crore and net indirect taxes are ₹55 crore. What is NDP at market price?
Answer and explanation
Correct answer: ₹815 crore
To move from factor cost to market price, add net indirect taxes: NDP at Market Price = NDP at Factor Cost + Net Indirect Taxes. Therefore, ₹760 crore + ₹55 crore = ₹815 crore, so option C is correct. Option A subtracts taxes in the reverse direction, option B ignores the tax adjustment, and option D adds an incorrect amount of ₹110 crore.
Frequently asked questions
What is the correct answer to this question?
₹815 crore
Why is this the correct answer?
To move from factor cost to market price, add net indirect taxes: NDP at Market Price = NDP at Factor Cost + Net Indirect Taxes. Therefore, ₹760 crore + ₹55 crore = ₹815 crore, so option C is correct. Option A subtracts taxes in the reverse direction, option B ignores the tax adjustment, and option D adds an incorrect amount of ₹110 crore.
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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