If economic subsidies are added to and indirect taxes are subtracted from the national income market prices, then it will be equal to ______________.

Domestic Income

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National Income

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Gross national product at market prices

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Gross domestic product at factor cost

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Solution

The correct option is B National Income
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)
NNP(at market price) - Net Indirect tax = NNP(at factor cost)
Here, Net Indirect tax= Indirect tax - Subsidies

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Similar questions

Particulars	Rs. in crores
(i) Gross national product at market price (ii) Indirect Tax (iii) Subsidies (iv) Depreciation (v) Net Factor income from abroad	58,350 2,590 1,540 1,625 -240

(a) Why are pensions included in national income but not old age pensions ?

(b) Calculate gross domestic product at market price using production method and income method:

(i) Rent and interest	(Rs. in crores) $6, 000$
(ii) Wages and salaries	$1, 800$
(iii) Undistributed profit	$400$
(iv) Net indirect taxes	$100$
(v) Subsidies	$20$
(vi) Corporation tax	$120$
(vii) Net factor income to abroad	$70$
(viii) Dividends	$80$
(ix) Consumption of fixed capital	$50$
(x) Social security contribution by employers	$200$
(xi) Mixed income	$1, 000$

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