New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Identify the correct formula which states the relation

    between GDP and GVA.
    A GDP (MP) = ∑ GVA (Basic Prices) + Product Taxes – Product Subsidies Correct Answer Incorrect Answer
    B GDP (MP) = ∑ GVA (Basic Prices) - Product Taxes + Product Subsidies Correct Answer Incorrect Answer
    C GDP (Basic Prices) = ∑ GVA (Market Price) + Product Taxes – Product Subsidies Correct Answer Incorrect Answer
    D GDP (Basic Prices) = ∑ GVA (Market Price) - Product Taxes + Product Subsidies Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    GDP (MP) = ∑ GVA (Basic Prices) + Product Taxes – Product Subsidies We can also write above formula as GDP (MP) = ∑ GVA (Basic Prices) + Net Product Taxes. Here, it’s important to understand the concepts of Factor Cost, Basic Prices, Market Price, Product Taxes and Production taxes. Watch vide again and make your own notes.

    Practice Next