Economic Awareness - Sectors of Indian Economy
When calculating GDP at market price from GDP at factor cost, subsidies are:
When calculating GDP at market price from GDP at factor cost, subsidies are:
easy Q13 of 15
Step-by-Step Solution
Step 1: Recall the formula
GDP at Market Price = GDP at Factor Cost + Indirect Taxes - Subsidies.Step 2: Identify treatment of subsidies
Subsidies are subtracted to arrive at market price.Final Answer:
Subtracted → Option BQuick Check:
Subsidies subtracted for market price ✅
Quick Trick: Subsidies reduce market price relative to factor cost.
Common Mistakes:
- Thinking subsidies increase market price.
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