blsurafel blsurafel

13-05-2024
Business

Answered

28. To adjust GDP from market prices to factor cost
A. deduct corporate tax and add transfer income
B. add income tax and deduct net factor income from abroad
C. add indirect taxes and deduct subsidies
D. deduct indirect taxes and add subsidies

Answer :

GinnyAnswer GinnyAnswer

13-05-2024

Final answer:

The process of adjusting GDP involves adding taxes less subsidies on production and imports to convert GDP at factor cost to GDP.

Explanation:

Adding taxes less subsidies on production and imports converts GDP at factor cost to GDP. The adjustment for indirect business taxes includes transfer payments made by business firms and surpluses or deficits of government enterprises. Indirect taxes minus subsidies are added to get from factor cost to market prices.

Learn more about GDP adjustments here:

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