Question

Which of the following affects national income? A GST B Corporation tax C subsidies D none of the above. Explain with full reason by taking example

Answer 1

Answer:

Subsidies

National income is the money value of the final goods and services that are produced within the territories of the country during a year. Subsidies are given by the government to reduce the cost of production of goods and services. Thus while calculating national income, the net indirect taxes are subtracted, while the subsidies are added.