Question
Distinguish between Gross domestic product at a market price and Gross domestic product at factor cost.
Solution
| Basis of Difference | Gross domestic product at a market price | Gross domestic product at factor cost |
| Meaning | Gross market value of all goods and services produced within the domestic territory. | Gross money value of all goods and services produced within the domestic territory. |
| Subsidy/Indirect tax | Includes indirect tax paid but excludes subsidies | Includes subsidies but excludes indirect taxes paid |
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Solution Distinguish Between Gross Domestic Product at a Market Price and Gross Domestic Product at Factor Cost. Concept: Equilibrium Price.
