Q146
Indian EconomyNational Income, Sectors & Growth
The difference between GDP at market prices and GDP at factory (factor) cost is
- a.direct taxes
- b.transfer payments
- c.indirect taxes
- d.subsidies
Answer: (C) indirect taxes
GDP at market price equals GDP at factor cost plus indirect taxes minus subsidies; indirect taxes are the main item bridging the two measures, per the standard textbook simplification.