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3 years ago

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

Social Studies

1 answer:

galina1969 [7]3 years ago

7 0

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

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