Question

What is meant by national product at market prices?

Answer 1

• National Product at Market Prices means the total value of all final goods and services produced by the normal residents of a country in one year, calculated at the prices actually paid in the market.
• It includes indirect taxes (like GST and excise duty) and excludes subsidies, because these affect the prices that consumers pay.
• In short, it shows the value of production at the prices people pay in the market.