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Question
Which of the following affects national income? (Choose the correct alternative.)
Options
Goods and Service tax
Corporation tax
Subsidies
None of the above
MCQ
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Solution
None of the above
Explanation:
- National Income is calculated at factor cost, so taxes and subsidies affect it.
- Indirect taxes like GST reduce National Income.
- Subsidies increase National Income since they are added.
- Direct taxes like corporation tax also influence disposable income and government revenue.
- Since all the given options affect National Income in some way.
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