Solved UPSC CDS/OTA Question
A solved UPSC CDS/OTA PYQ - decoded step-by-step.
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Q · National IncomeModerate · 45s
Which of the following increases National Income at factor cost when moving from market prices?
TopicNational Income
Question Typemultiple choice
DifficultyModerate
Marking+1 / −0.33
Test Duration30 min
Step-by-Step Solution
The complete worked solution.
Every step explained - no skipped algebra.
Factor cost = Market prices − Net Indirect Taxes (indirect taxes − subsidies). Hence we subtract NIT from MP to reach FC.
Final Answer: Option C - Subtracting net indirect taxes