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National Income at factor cost is equal to
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- Net National Product – Indirect taxes + Subsidies
- Net National Product – Direct taxes + Subsidies
- Gross National Product – Depreciation charges
- Net National Product + Net income from abroad
- Net National Product – Indirect taxes + Subsidies
Correct Option: A
Factor cost or national income by type of income is a measure of national income or output based on the cost of factors of production, instead of market prices. This allows the effect of any subsidy or indirect tax to be removed from the final measure.
