Economic Awareness - Sectors of Indian Economy
Which of the following components is added to GDP at factor cost to arrive at GDP at market price?
Which of the following components is added to GDP at factor cost to arrive at GDP at market price?
easy Q12 of 15
Step-by-Step Solution
Step 1: Understand the components
GDP at market price includes indirect taxes which increase the price paid by consumers.Step 2: Apply the formula
GDP at Market Price = GDP at Factor Cost + Indirect Taxes - Subsidies, so indirect taxes are added.Final Answer:
Indirect taxes → Option AQuick Check:
GDP at market price = GDP at factor cost + indirect taxes ✅
Quick Trick: Indirect taxes increase market price over factor cost.
Common Mistakes:
- Mistaking direct taxes or subsidies as components added to factor cost for market price.
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