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    Question

    The Gross Domestic Product at Market Price (GDPmp) of an

    economy is ₹2,500 billion. Indirect taxes amount to ₹300 billion and subsidies amount to ₹120 billion. What will be the GDP at Factor Cost (GDPfc)? 
    A ₹2,080 billion Correct Answer Incorrect Answer
    B ₹2,180 billion Correct Answer Incorrect Answer
    C ₹2,320 billion Correct Answer Incorrect Answer
    D ₹2,680 billion Correct Answer Incorrect Answer
    E ₹2,920 billion Correct Answer Incorrect Answer

    Solution

    GDP at Factor Cost = GDP at Market Price - Indirect Taxes + Subsidies   =2500-300 + 120  = 2320 billion 

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