In the country of Darrowby, net domestic income at factor cost is $2.0 million. Gross domestic product is $3.0 million, and depreciation is $0.5 million. Indirect taxes less subsidies ________.

Question

In the country of Darrowby, net domestic income at factor cost is $2.0 million. Gross domestic product is $3.0 million, and depreciation is $0.5 million. Indirect taxes less subsidies  ________.

Quizplus · Accepted Answer

Indirect taxes less subsidies can be calculated by subtracting net domestic income at factor cost and depreciation from the gross domestic product. Thus, $3.0 million - $2.0 million - $0.5 million = $0.5 million.

In the Country of Darrowby, Net Domestic Income at Factor