Macroeconomics: National Income Accounting · Class 12 · CBSE · Commerce Economics
An economy has a GDP at market price of ₹1,200 crore, depreciation of ₹100 crore, indirect taxes of ₹80 crore, and subsidies of ₹20 crore. What is it…
Practice question from Macroeconomics: National Income Accounting (Class 12 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
medium · MCQ · Q-44D2A7
An economy has a GDP at market price of ₹1,200 crore, depreciation of ₹100 crore, indirect taxes of ₹80 crore, and subsidies of ₹20 crore. What is its NDP at factor cost?
- A.₹1,000 crore
- B.₹1,040 croreCorrect answer
- C.₹1,100 crore
- D.₹1,160 crore
Solution
Net indirect taxes = indirect taxes − subsidies = ₹80 crore − ₹20 crore = ₹60 crore. Therefore, NDP at factor cost = GDP at market price − depreciation − net indirect taxes = ₹1,200 − ₹100 − ₹60 = ₹1,040 crore.
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