[amp_mcq option1=”P(Q) + P(S)” option2=”GDP – IT – S” option3=”GDP + DT + S” option4=”GDP – DT + S” correct=”option4″]<\/p>\n
The correct answer is D. GDP – DT + S.<\/p>\n
Gross output at factor cost (GOF) is the total value of goods and services produced by an economy in a given period of time, measured at factor cost. It is calculated by subtracting indirect taxes (IT) and subsidies (S) from gross domestic product (GDP).<\/p>\n
GDP is the total market value of all final goods and services produced within a country’s borders in a given period of time. It is calculated by adding up the value added of all sectors of the economy.<\/p>\n
Indirect taxes are taxes that are levied on goods and services at the point of sale. They are not included in the value of the goods or services themselves, but are added to the price that consumers pay.<\/p>\n
Subsidies are payments made by the government to producers of goods and services. They are not included in the value of the goods or services themselves, but are subtracted from the price that producers receive.<\/p>\n
Therefore, GOF is calculated as follows:<\/p>\n
GOF = GDP – IT – S<\/p>\n
Option A is incorrect because it includes the value of intermediate goods and services. Intermediate goods and services are goods and services that are used in the production of other goods and services. They are not included in GOF because they have already been counted in the value of the final goods and services that they are used to produce.<\/p>\n
Option B is incorrect because it includes indirect taxes. Indirect taxes are not included in GOF because they are not paid by the factors of production. Instead, they are paid by consumers when they purchase goods and services.<\/p>\n
Option C is incorrect because it includes subsidies. Subsidies are not included in GOF because they are not paid by the factors of production. Instead, they are paid by the government to producers of goods and services.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”P(Q) + P(S)” option2=”GDP – IT – S” option3=”GDP + DT + S” option4=”GDP – DT + S” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[702],"tags":[],"class_list":["post-33867","post","type-post","status-publish","format-standard","hentry","category-business-environment-and-international-business","no-featured-image-padding"],"yoast_head":"\n