GDPMP=GDPFC+________:a)Depreciationb)NIFAc)Net indirect Taxd)Subsidies...
Explanation:
GDPMP (Gross Domestic Product at Market Prices) is the total value of all final goods and services produced within the domestic territory of a country during a particular period, valued at market prices.
GDPFC (Gross Domestic Product at Factor Cost) is the total value of all final goods and services produced within the domestic territory of a country during a particular period, valued at factor cost.
Net Indirect Tax:
Indirect taxes are those taxes which are levied on the production and sale of goods and services. These taxes are ultimately borne by the consumers of these goods and services. Examples of indirect taxes include excise duty, customs duty, sales tax, service tax, etc. Net Indirect Tax is the difference between Indirect Taxes collected by the government and subsidies given by the government.
Subsidies:
Subsidies are the financial assistance provided by the government to support industries or businesses. They are given to encourage production and consumption of goods and services, especially in the case of essential commodities. Subsidies reduce the cost of production and make the products affordable to the consumers.
Therefore, GDPMP=GDPFC+Net Indirect Tax-Subsidies
Since GDPMP and GDPFC are equal, we can say that GDPMP=GDPFC= GDP at factor cost. So, the correct answer is option C, which is Net Indirect Tax.
GDPMP=GDPFC+________:a)Depreciationb)NIFAc)Net indirect Taxd)Subsidies...
C is right answer because when we add NIT to factor cost we will GDP at market price.