Which of the following is true about the basic price in the determination of National Income?

CA Foundation · Business Economics · PYQS · May 2025
Which of the following is true about the basic price in the determination of National Income?
(A) A. Basic Price = Factor Cost + Subsidy - Manufacturing Taxes + Manufacturing
(B) B. Basic Price = Factor Cost - Depreciation
(C) C. Basic Price = Factor Cost + Net Factor Income from Abroad
(D) D. Basic Price = Factor Cost + Production Tax + Production Subsidy

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. Basic Price = Factor Cost + Production Tax + Production Subsidy

Topics: Determination of National Income

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