The difference between GDP at factor cost and GDP at market prices is:

Name: The difference between GDP at factor cost and GDP at market prices is:
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Question

Quizplus · Accepted Answer

GDP at factor cost is the sum of all incomes earned by the factors of production (i.e. labor, capital, land) without including indirect taxes and subsidies, while GDP at market prices includes indirect taxes less subsidies. Therefore, the difference between the two is indirect taxes less subsidies.

The Difference Between GDP at Factor Cost and GDP at Market