The central Statistical Office (CSO) has started measuring economic growth by gross value-added (GVA) at basic prices, replacing the practice of measuring it by GDP at factor cost. What is the difference between GDP at factor cost and GVA at basic prices?

Answer: [A] Production taxes are included and production subsidies excluded from GVA at basic prices

The difference between GDP at factor cost and GVA at basic prices is that production taxes are included and production subsidies excluded from the latter.

This question is a part of GKToday's Integrated IAS General Studies Module