If GDP MP = Rs. 15,000, NIT=Rs500, find GDP FC.

Question

Social Studies

Isabell Wong

3 January, 08:22

If GDP MP = Rs. 15,000, NIT=Rs500, find GDP FC.

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Answers (1)

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Averi Collins · Answer 1

GDP FC will be Rs 14,500.

Explanation:

Formula for Gross Domestic Product at market price = Gross Domestic Product at factor cost + indirect taxes - subsidies.

In the above question Gross Domestic Product at market price is given that is Rs 15000, Net Indirect tax (indirect tax - subsidy) that is Rs 500 has been given, to find the value of Gross Domestic Product at factor cost, we have to follow the procedure.

GDP MP = GDP FC + NIT

15000=GDP FC + 500

GDP FC = 15,000-500 = 14,500