BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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GDP minus indirect taxes plus subsidies
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GNP minus depreciation allowance
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NNP plus depreciation allowance
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GDP minus subsidies plus indirect taxes
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Detailed explanation-1: -GDP at factor cost or basic prices are equal to market prices minus taxes on transaction of products plus subsidies on products. The sum of net value added in various economic activities is known as GDP at factor cost. SSC CPO SI Marks Released on 10th January 2023.
Detailed explanation-2: -Gross domestic product (GDP) at factor cost is GDP at market prices minus net indirect taxes.
Detailed explanation-3: -∴ GDP at factor cost = GDP at market price + Subsidies-Indirect Tax.
Detailed explanation-4: -Answer: GDP at factor cost includes all subsidies, whether they be for intermediate inputs, labor, or capital, and excludes all taxes on output. Only taxes and subsidies on intermediate inputs are included in the basic price method.
Detailed explanation-5: -If economic subsidies are added to and indirect taxes are subtracted from the national income market prices, then it will be equal to National Income(NNP at factor cost). Formula: NNP(at market price)-Indirect tax + Subsidies = NNP(at factor cost)