A) NNP at market prices \[-\] Indirect taxes + Subsidies
B) NNP at factor cost \[-\] Indirect taxes \[-\] Subsidies
C) NNP at market prices \[-\] direct taxes + Subsidies
D) NNP at factor cost \[-\] direct taxes \[-\] Subsidies
Correct Answer: A
Solution :
[a] National Income is calculated by subtracting net indirect taxes from NNP at market prices. The obtained value is known as NNP at factor cost or national income. NNP at factor cost or National income = NNP at market price \[-\] (Indirect Taxes ? Subsidy) = \[NN{{P}_{MP}}-\] Indirect Tax + Subsidy.
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