Answer: Option D
Answer: (d)
GDP at factor cost is GDP at market price minus indirect taxes plus subsidies. GDP at factor cost measure the value of output in terms of what it really costs to produce.
However, adjustments have to be made for government subsidies to firms that make up market prices purchasers pay so price plus subsidy represent the true income to the factor of production.
Therefore, We can value domestic output at prices received by producers after indirect taxes and subsidies have been taken into account.