The difference between market price and factor cost for an aggregate like GDP is:

CA Foundation · Business Economics · PYQS · May 2026
The difference between market price and factor cost for an aggregate like GDP is:
(A) A. Net exports (excluding subsidies)
(B) B. Net indirect taxes (indirect taxes minus subsidies)
(C) C. Depreciation
(D) D. Net factor income from abroad

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Net indirect taxes (indirect taxes minus subsidies)

Topics: Determination of National Income

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