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GDP at factor cost : |
$C+I+G+(X-M)$ $GDP_{MP}+NFIA$ $GDP_{MP}-NIT$ $GNP_{MP}- Depreciation $ |
$GDP_{MP}-NIT$ |
The correct answer is option (3) : $GDP_{MP}-NIT$ GDP at factor cost is gross domestic product at market prices, less net product taxes. Market prices are the prices as paid by the consumers. Market prices also include product taxes and subsides. The term factor cost refers to the prices of products as received by the producers. Thus, factor cost is equal to market prices, minus net indirect taxes. GDP at factor cost measures money value of output produced by the firms within the domestic boundaries of a country in a year. So, $GDP_{FC}=GDP_{MP}-NIT$ |
