Option 4: (A) - (III), (B) - (IV), (C) - (I), (D) - (II) -> In national income accounting, the relationship between market prices (MP) and factor cost (FC) is bridged by Net Indirect Taxes (NIT = Indirect Taxes - Subsidies). The key formulas are:
• GDP_MP = GDP_FC + NIT (adding NIT converts FC to MP)
• GDP_FC = GDP_MP - NIT (subtracting NIT converts MP to FC)
• NNP_MP = NNP_FC + NIT (same logic applies to NNP)
• NNP_FC = NNP_MP - NIT
Therefore: (A) matches (III), (B) matches (IV), (C) matches (I), and (D) matches (II). Market prices include indirect taxes, while factor cost represents actual payments to factors of production. -> correct