If economic subsidies are added to and indirect taxes are subtracted from the national income at market prices, then it will be equal to:
If economic subsidies are added to and indirect taxes are subtracted from the national income at market prices, then it will be equal to:
(a) Domestic Income
(b) National Income
(c) Gross national product at market prices
(d) Gross domestic product at factor cost
Anurag Pathak Changed status to publish December 7, 2023
Ans – (b)
Explanation:-
National Income at Market Price – Net indirect taxes (indirect taxes – Subsidies)
National Income at Factor cost = National Income at Market Price + Subsidies – indirect taxes
We would still get National Income but at Factor cost.
Anurag Pathak Changed status to publish December 7, 2023
