Adding the amount of indirect tax from the payment of all the factors
Adding the payments of all the factors in a year
Equal to national income at factor cost
Gross national production deterioration
Answer is Right!
Answer is Wrong!
The correct answer is: A. Adding the amount of indirect tax from the payment of all the factors.
National income on market value is the total income earned by all the factors of production in a country in a year. It is calculated by adding the amount of indirect tax to the national income at factor cost. Indirect taxes are taxes that are levied on goods and services, and they are not paid directly to the government by the factors of production. Instead, they are paid by the consumers of the goods and services. When indirect taxes are added to the national income at factor cost, they give us the national income on market value.
The other options are incorrect because:
- Option B is incorrect because it does not include indirect taxes.
- Option C is incorrect because national income at factor cost is not equal to national income on market value.
- Option D is incorrect because gross national production deterioration is not a measure of national income.