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GDP (at market prices) is equal to :
  • a)
    GVA at basic prices + product taxes - product subsidies
  • b)
    GVA at basic prices - production taxes - production subsidies
  • c)
    GVA at basic prices + production taxes + production subsidies
  • d)
    None of them
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
GDP (at market prices) is equal to :a) GVA at basic prices + product ...
  • GVA (Gross Value Added) at basic prices = CE + OS/MI + CFC + production taxes less production subsidies.
  • GVA at factor cost = GVA at basic prices -production taxes fewer production subsidies.
  • GDP = GVA at basic prices + product taxes - product subsidies.
  • Production taxes or production subsidies are paid or received with relation to production and are independent of the volume of actual production.
Some examples of production taxes are land revenues, stamps and registration fees and profession tax.
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GDP (at market prices) is equal to :a) GVA at basic prices + product taxes - product subsidiesb) GVA at basic prices - production taxes - production subsidiesc) GVA at basic prices + production taxes + production subsidiesd) None of themCorrect answer is option 'A'. Can you explain this answer?
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