GDP at market prices equals GDP at factor cost

Indian Economy and Banking · Economic & Social Development · Hard · Practice for UPSC CSE GS 1

GDP at market prices equals GDP at factor cost

minus indirect taxes plus subsidies
plus indirect taxes minus subsidies
plus depreciation
minus net factor income from abroad

Answer and solution

Correct answer: B) plus indirect taxes minus subsidies

Market prices include taxes on products and exclude subsidies.

Learn the method: Indian Economy and Banking rules and worked examples · UPSC CSE GS 1 Economic & Social Development

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