Question

Which relationship is correct for GVA at Basic Prices?

Options

• GVA at Basic Prices = GVA at Market Prices − Net Production Taxes

• GVA at Basic Prices = GVA at Factor Cost − Net Product Taxes

• GVA at Basic Prices = GVA at Market Prices − Net Product Taxes

• GVA at Basic Prices = GDP at Market Prices + Net Product Taxes

Answer 1

GVA at Basic Prices is obtained by deducting Net Product Taxes from GVA at Market Prices. The relationship is GVA at Basic Prices = GVA at Market Prices − Net Product Taxes.