Multiple choice

Which of the following is true?

  1. GDP at factor cost = GDP at market price + Net indirect taxes

  2. GDP at factor cost = GDP at market price - indirect taxes

  3. GDP at factor cost = GDP at market price - Subsidy

  4. GDP at factor cost = GDP at market price - Net factor income from abroad

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It is calculated as = GDP at market price - Net indirect taxes where net indirect taxes = indirect taxes - subsidy

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