Understand Factor Cost & Market Price in National Income Accounting (for UPSC CSE)

Lesson 5 of 9 • 829 upvotes • 10:24 mins

In this lesson, the presenter furthers our understanding of the course on National Income Accounting by explaining the concept of "Factor Cost" which is the actual cost incurred on goods & services. Using a very simple example, the presenter explains the calculation of this concept. He then explains the concept of "Market price" which is the price at which the goods are sold. The features of the same are explained in detail and also the types of taxes that are levied on goods manufactured or sold are shed light upon.