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Question : Factor cost + ________________________ = Market price.

Option 1: Indirect taxes

Option 2: Net Indirect taxes

Option 3: Domestic income

Option 4: National income


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 10th Jan, 2024

Correct Answer: Net Indirect taxes


Solution :

The difference between indirect tax and subsidy is known as net indirect tax. Indirect taxes are added to factor cost and subsidies are deducted to arrive at market prices (MP).
Net indirect taxes distinguish indirect tax from subsidies.
Hence, option B is correct.

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