UPSC Exam > UPSC Questions > Consider the following statements:1. Producti...
Start Learning for Free
Consider the following statements:
1. Production taxes and subsidies are independent of the volume of production.
2. Product taxes and subsidies are paid pair or received per unit product.
Which of the statements given above is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Consider the following statements:1. Production taxes and subsidies ar...
Production Taxes and Subsidies:
Production taxes and subsidies are independent of the volume of production. This means that the amount of tax or subsidy imposed on a production process does not change based on the quantity of goods produced. Whether a company produces 100 units or 1000 units, the production tax or subsidy remains constant.
Product Taxes and Subsidies:
Product taxes and subsidies are paid or received per unit product. This implies that for each unit of a product sold, a specific tax needs to be paid or a subsidy is received. The amount of tax or subsidy is directly linked to the quantity of products sold.
Therefore, both statements are correct. Production taxes and subsidies are not dependent on the volume of production, while product taxes and subsidies are based on the number of units sold.
Production taxes and subsidies are independent of the volume of production. This means that the amount of tax or subsidy imposed on a production process does not change based on the quantity of goods produced. Whether a company produces 100 units or 1000 units, the production tax or subsidy remains constant.
Product Taxes and Subsidies:
Product taxes and subsidies are paid or received per unit product. This implies that for each unit of a product sold, a specific tax needs to be paid or a subsidy is received. The amount of tax or subsidy is directly linked to the quantity of products sold.
Therefore, both statements are correct. Production taxes and subsidies are not dependent on the volume of production, while product taxes and subsidies are based on the number of units sold.
Free Test
FREE
| Start Free Test |
Community Answer
Consider the following statements:1. Production taxes and subsidies ar...
- GVA is the value of total output produced in the economy less the value of intermediate consumption (the output which is used in the production of output further, and not used in final consumption). It is important to understand the concepts such as basic prices, factor cost, and market price to understand GVA. The distinction between factor cost, basic prices, and market prices are based on the distinction between net production taxes (production taxes fewer production subsidies) and net product taxes (product taxes less product subsidies).
- Production taxes and subsidies are paid or received in relation to production and are independent of the volume of production such as land revenues, stamp and registration fees. Product taxes and subsidies, on the other hand, are paid or received per unit or product, e.g., excise tax, service tax, export, and import duties, etc. Hence, statements 1 and 2 are correct.
- Factor cost includes only the payment to factors of production, it does not include any tax. In order to arrive at the market prices, we have to add to the factor cost the total indirect taxes less total subsidies. The basic prices lie in between: they include production taxes (fewer production subsidies) but not product taxes (fewer product subsidies). Therefore in order to arrive at market prices we have to add product taxes (less product subsidies) to the basic prices.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Similar UPSC Doubts
Top Courses for UPSCView all
Consider the following statements:1. Production taxes and subsidies are independent of the volume of production.2. Product taxes and subsidies are paid pair or received per unit product.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
Question Description
Consider the following statements:1. Production taxes and subsidies are independent of the volume of production.2. Product taxes and subsidies are paid pair or received per unit product.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements:1. Production taxes and subsidies are independent of the volume of production.2. Product taxes and subsidies are paid pair or received per unit product.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements:1. Production taxes and subsidies are independent of the volume of production.2. Product taxes and subsidies are paid pair or received per unit product.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
Consider the following statements:1. Production taxes and subsidies are independent of the volume of production.2. Product taxes and subsidies are paid pair or received per unit product.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements:1. Production taxes and subsidies are independent of the volume of production.2. Product taxes and subsidies are paid pair or received per unit product.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements:1. Production taxes and subsidies are independent of the volume of production.2. Product taxes and subsidies are paid pair or received per unit product.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
Solutions for Consider the following statements:1. Production taxes and subsidies are independent of the volume of production.2. Product taxes and subsidies are paid pair or received per unit product.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Consider the following statements:1. Production taxes and subsidies are independent of the volume of production.2. Product taxes and subsidies are paid pair or received per unit product.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Consider the following statements:1. Production taxes and subsidies are independent of the volume of production.2. Product taxes and subsidies are paid pair or received per unit product.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Consider the following statements:1. Production taxes and subsidies are independent of the volume of production.2. Product taxes and subsidies are paid pair or received per unit product.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Consider the following statements:1. Production taxes and subsidies are independent of the volume of production.2. Product taxes and subsidies are paid pair or received per unit product.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following statements:1. Production taxes and subsidies are independent of the volume of production.2. Product taxes and subsidies are paid pair or received per unit product.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup