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GDP at factor cost + GDP at market price
–(minus) _________ +(plus) subsidies
–(minus) _________ +(plus) subsidies
- a)Direct taxes
- b)Indirect taxes
- c)Income from abroad
- d)Foreign debts.
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
GDP at factor cost + GDP at market price–(minus) _________ +(plu...
GDP(FC) = GDP(MP) - Indirect Taxes + Subsidies
If the Government tries to raise the subsidies, the Difference between the GDP(FC) and GDP(FC) will increase. The same is opposite for Indirect taxes.
Most Upvoted Answer
GDP at factor cost + GDP at market price–(minus) _________ +(plu...
GDP at factor cost refers to the value of all goods and services produced in an economy, measured at the prices paid to factors of production, such as labor and capital. It does not include any indirect taxes or subsidies.
GDP at market price, on the other hand, refers to the value of all goods and services produced in an economy, measured at the prices paid by the final consumers in the market. It includes all indirect taxes and subsidies.
In other words, GDP at factor cost measures the production value from the producer's perspective, while GDP at market price measures the consumption value from the consumer's perspective.
GDP at market price, on the other hand, refers to the value of all goods and services produced in an economy, measured at the prices paid by the final consumers in the market. It includes all indirect taxes and subsidies.
In other words, GDP at factor cost measures the production value from the producer's perspective, while GDP at market price measures the consumption value from the consumer's perspective.
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GDP at factor cost + GDP at market price–(minus) _________ +(plus) subsidiesa)Direct taxesb)Indirect taxesc)Income from abroadd)Foreign debts.Correct answer is option 'B'. Can you explain this answer?
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