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Give Reason Or Explain the Following Statement: National Income at Factor Cost Includes Subsidy. - Economics

Short Note

Give reason or explain the following statement:

National income at factor cost includes subsidy.

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Solution

Factor costs are the actual payments made to the factors of production for rendering their service in the course of production. In case subsidy is provided for the same, its value must also be included to get the correct value of factor cost.

Concept: Concept of National Income
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APPEARS IN

Micheal Vaz Economics HSC 12th Standard Maharashtra State Board
Chapter 9 National Income
Exercise | Q 2.2 | Page 79
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