GDP at market prices equals GDP at factor cost: MCQ with Answer and Explanation

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GDP at market prices equals GDP at factor cost:

A. minus indirect taxes plus subsidies

B. plus indirect taxes minus subsidies

C. minus indirect taxes minus subsidies

D. plus indirect taxes plus subsidies

Answer: Option B

Solution (By JKSSB Mock Tests)

GDP at market prices = GDP at factor cost + indirect taxes - subsidies.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'National Industrial Classification' is used in India for:

A. tax collection

B. classifying economic activities

C. population census

D. stock trading

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Correct Answer: Option B

Explanation:
NIC classifies economic activities for statistical purposes.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a characteristic of the 'Endogenous Growth Theory'?

A. Technological progress is exogenous

B. Diminishing returns to capital always limit growth

C. Only population growth determines per capita income growth

D. Long-run growth is determined by factors within the model such as human capital and R&D

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Correct Answer: Option D

Explanation:
Endogenous growth theory treats technological progress and human capital accumulation as outcomes of economic decisions within the model, allowing sustained long-run growth in per capita income.

This question belongs to: Economy GK Economy Set 1

Question #3

The term 'Invisible Trade' in the balance of payments includes:

A. Trade in services, income and unilateral transfers

B. Only foreign direct investment

C. Only capital transfers

D. Trade in merchandise goods only

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Correct Answer: Option A

Explanation:
Invisible trade (invisibles) comprises services (travel, transportation, software, etc.), primary income and secondary income (transfers).

This question belongs to: Economy GK Economy Set 1

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