Explain the concept of Gross domestic product at market prices.
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GDP (gross domestic product)is d value of all final goods n services produced in nation during one year period..
GDP at ‘factor cost' and GDP at' market price' differs bcz value of goods n services varies in above cases.
Input cost the producer has to incur in d process of production is factor cost.(cost of capital, interest, rent,wages, raw materials)
When factor cost is considered to calculate GDP then it is GDP at factor cost.
Market cost derivd after adding indirect taxes to the factor cost of production .it means d cost at which d goods entered in market.
When market cost is used to calculate GDP then it is GDP at market price..
GDP at ‘factor cost' and GDP at' market price' differs bcz value of goods n services varies in above cases.
Input cost the producer has to incur in d process of production is factor cost.(cost of capital, interest, rent,wages, raw materials)
When factor cost is considered to calculate GDP then it is GDP at factor cost.
Market cost derivd after adding indirect taxes to the factor cost of production .it means d cost at which d goods entered in market.
When market cost is used to calculate GDP then it is GDP at market price..
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Gross domestic product at market prices:
• GDP at market prices is the amount of the gross values additional of all resident producers at market prices, plus taxes less grants on imports.
• The most important step of economic activity in a country
• The GDP is the crossing point of 3 sides of the economy: expenditure, output, and income.
Hope it helped..............
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https://brainly.in/question/3463418 What is gdp? how is it calculated?
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