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National Income Aggregates & GDP · Question 22 of 69

Question 22

EasyOriginal question

GDP at factor cost = GDP at market price −

Options for question 22

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. Market prices include indirect taxes and are lowered by subsidies.

  2. Factor cost is what the factors receive, so net indirect taxes are taken out.

Concept
Market price and factor cost
Typical time
40 s
Your time
—
The rule this testsMarket price, factor cost and basic prices
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Ten questions from National Income Aggregates & GDP, at your own pace.

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Ten questions from National Income Aggregates & GDP, at your own pace.

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