Factor Cost and Market Price
Economics ⇒ National Income and Related Aggregates
Factor Cost and Market Price starts at 12 and continues till grade 12.
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A country has a national income at factor cost of ₹10,000 crore and net indirect taxes of ₹1,500 crore. What is the national income at market price?
A country has GDP at market price of ₹5,000 crore and net indirect taxes of ₹500 crore. What is GDP at factor cost?
A product has a factor cost of ₹500, indirect taxes of ₹60, and subsidies of ₹10. Calculate its market price.
Define factor cost in the context of national income accounting.
Describe how subsidies affect the relationship between factor cost and market price.
Describe the impact of a decrease in indirect taxes on the relationship between factor cost and market price.
Describe the process of converting gross domestic product at market price (GDPMP) to gross domestic product at factor cost (GDPFC).
Explain the relationship between factor cost and market price.
Explain why indirect taxes are added to factor cost to arrive at market price.
Explain why national income is often measured at factor cost rather than market price.
Explain with an example how to convert national income at market price to national income at factor cost.
If a government increases subsidies, what will happen to the market price, assuming factor cost remains constant?
If net indirect taxes are negative, what does it imply about subsidies and indirect taxes?
If Net Indirect Taxes are positive, which is higher: factor cost or market price?
If the factor cost of a product is ₹100, indirect taxes are ₹20, and subsidies are ₹5, what is the market price?
If the factor cost of a service is ₹1,000, indirect taxes are ₹200, and subsidies are ₹50, what is the market price?
If the market price of a good is ₹200 and net indirect taxes are ₹30, what is the factor cost?
If the market price of a good is ₹800 and subsidies are ₹50 more than indirect taxes, what is the factor cost?
What are net indirect taxes?
What is market price in national income accounting?
