Multiple choice

Which of the following is incorrect?

  1. GDP at market price = GDP at factor cost plus net indirect taxes

  2. NNP at factor cost = NNP at market prices minus net indirect taxes

  3. GNP at market prices = GDP at market prices plus net factor income from abroad

  4. None of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

This question asks for the INCORRECT statement. Options A, B, and C are all correct formulas: GDP at market price = GDP at factor cost + net indirect taxes; NNP at factor cost = NNP at market prices - net indirect taxes; GNP at market prices = GDP at market prices + net factor income from abroad. Since all A, B, and C are correct, option D 'None of the above' (meaning none are incorrect) is the right answer.

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