Economic Awareness - Sectors of Indian Economy
Which of the following statements correctly distinguishes GDP at factor cost from GDP at market price?
Which of the following statements correctly distinguishes GDP at factor cost from GDP at market price?
medium Q8 of 15
Step-by-Step Solution
Step 1: Recall definitions
GDP at factor cost excludes indirect taxes but includes subsidies; GDP at market price includes indirect taxes but excludes subsidies.Step 2: Analyze statements
GDP at factor cost excludes indirect taxes and includes subsidies is correct.Final Answer:
GDP at factor cost excludes indirect taxes and includes subsidies → Option DQuick Check:
FC excludes IT includes Sub ✅
Quick Trick: Remember factor cost excludes taxes, includes subsidies.
Common Mistakes:
- Confusing inclusion/exclusion of taxes and subsidies.
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