Question

Distinguish between value added at market prices and value added at factor cost

Answer 1

India's New GDP Series 2011-12: Everything You Need To Know For arriving at the new gross value added (GVA) at basic prices, production taxes, such as property tax, are added and subsidies are subtracted from GDP at factor cost. Put simply, GVA at basic price represents what accrues to the producer, before the product is sold.