Question

In the price ladder, which sequence correctly leads to GDP at Market Prices?

Options

• GVA at Basic Prices → + Net Production Taxes → GVA at Factor Cost → + Net Product Taxes → GDP

• GVA at Factor Cost → + Net Production Taxes → GVA at Basic Prices → + Net Product Taxes → GVA at Market Prices (GDP)

• GVA at Market Prices → + Net Product Taxes → GVA at Basic Prices → + Net Production Taxes → GDP

• GVA at Factor Cost → + Net Product Taxes → GVA at Basic Prices → + Net Production Taxes → GDP

Answer 1

The price ladder has two stages. Net Production Taxes are added first to reach GVA at Basic Prices, and Net Product Taxes are then added to reach GVA at Market Prices (GDP).