If subsidies are greater than indirect taxes, then

GDP at market price is greater than GDP at factor costCorrect answerYour answerGDP at factor cost is greater than GDP at market priceCorrect answerYour answerGDP at market price equals GDP at factor costCorrect answerYour answerGNP equals GDPCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

Net indirect taxes are negative, so GDP at FC = GDP at MP − (negative) is larger.

Concept: Negative net indirect taxes
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsMarket price, factor cost and basic prices

Practise this chapter →

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

Practise this chapter →

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

Practise this chapter All 69 questions in National Income Aggregates & GDP Revise the notes for National Income Aggregates & GDP

If subsidies are greater than indirect taxes, then

Explanation