Question

$GDP_{(FC)}$ = $GDP_{(MP)}$ - Indirect Tax + ________ (factor cost / indirect taxes / depreciation / subsidy), Fill in the blank with appropriate alternative given in the bracket.

Answer 1

Heya...

See here for your answer..

==========°=°

To go from GDP FC to GDP MP we have to - Indirect tax and + subsidies...

So subsidy is the answer...

Thank you

Answer 2

The correct answer is Subsidy.

Explanation:

• GDP stands for Gross Domestic Product.
• FC stands for Factor Cost.
• MP stands for Market Price.
• GDP can be defined as the sum total of all the ultimate goods and services produced within the territory of a country in one year.
• Factor Cost can be defined as the total cost invested in producing a particular good or service.
• Market Price is defined as the price obtained by the seller when he sells a commodity in the market.
• Indirect Tax is the tax collected by the government from a person who is intermediate in between the government and the actual tax payer.
• Subsidy is the reduction in price of certain goods and services such that  the remaining price of the good or service is paid by the Government.