SSC Economics Sample Paper NCERT Sample Paper-2

  • question_answer
    To convert GDP at market prices into factor cost we need to

    A) Deduct indirect taxes and added subsidies from it

    B) Subtract subsidies from it and indirect taxes to it

    C) Deduct indirect taxes and subsidies from it

    D) Deduct weight of inflation for the period from it

    Correct Answer: A

    Solution :

    GDP (FC) is GDP (MP) minus indirect taxes plus subsidies. The more is the subsidy, the more is difference between the GDP (FC) & GDP (MP).

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