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Which of the following is NOT included in GDP at factor cost?

easy Q2 of 15
Economic Awareness - Sectors of Indian Economy
Which of the following is NOT included in GDP at factor cost?
AIndirect Taxes
BSubsidies
CPayments to factors of production
DWages and rent
Step-by-Step Solution
  1. Step 1: Understand GDP at factor cost

    GDP at factor cost includes payments to factors of production such as wages, rent, and subsidies but excludes indirect taxes.
  2. Step 2: Identify the excluded component

    Indirect taxes are excluded from GDP at factor cost because they are not payments to factors but taxes levied by the government.
  3. Final Answer:

    Indirect Taxes → Option A
  4. Quick Check:

    Indirect taxes excluded from FC ✅
Quick Trick: Remember subsidies included, indirect taxes excluded in factor cost.
Common Mistakes:
  • Mistaking indirect taxes as part of factor cost.
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