Multiple Choice Questions on National Income at Factor Cost is less than National Income at Market Prices to the extent that ........ for UPSC Civil Services Examination (General Studies) Preparation

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Multiple Choice Questions

National Income at Factor Cost is less than National Income at Market Prices to the extent that ........

Economic Affairs Growth and Indicators
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    National Income at Factor Cost is less than National Income at Market Prices to the extent that:

    It includes indirect taxes and excludes subsidies

    Incorrect Answer

    Includes subsidies and excludes direct taxes

    Incorrect Answer

    Includes direct taxes and excludes subsidies

    Incorrect Answer

    Excludes indirect taxes but includes subsidies

    Correct Answer
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    Explanation:

    NI(f) = NI(m) +Subsidies - Indirect taxes

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