Economic Awareness - Sectors of Indian Economy
Which of the following is included in GDP at market price but excluded from GDP at factor cost?
Which of the following is included in GDP at market price but excluded from GDP at factor cost?
medium Q6 of 15
Step-by-Step Solution
Step 1: Understand components of GDP
GDP at market price includes indirect taxes, which increase the price paid by consumers.Step 2: Identify the component excluded from factor cost
Indirect taxes are excluded from GDP at factor cost but included in GDP at market price.Final Answer:
Indirect taxes → Option BQuick Check:
IT in MP, not in FC ✅
Quick Trick: Indirect taxes increase market price over factor cost.
Common Mistakes:
- Mistaking subsidies or wages as components excluded from factor cost.
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