CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
Question

If net national product is given at market prices, what needs to done with indirect taxes and subsidies to get the national income of the economy?

A
Add, Subtract
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Add, Divide
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Subtract, Add
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
D
Subtract, Divide
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is D Subtract, Add
If net national product is given at market prices, indirect taxes and subsidies should be subtracted and added respectively in order to get the national income of the economy.
Formula: NNP (at factor cost) = NDP(at market price)- Indirect tax + Subsidies + Net Factor Income from Abroad.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Items Excluded in GDP
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon