Question

49. (a) Define 'value of output'
. How is it different from 'value addition'?
(b) Calculate the value of “Mixed Income of Self-employed" from the following data:
in crore)
Items
17,300
(i) Compensation of employees
1,200
(ii) Interest
1,100
(iii) Consumption of fixed capital
?
(iv) Mixed income of self-employed
750
(v) Subsidies
27,500
(vi) Gross domestic product at market price
(vii) Indirect taxes
2,100
(viii) Profits
1,800
(ix) Rent
2,000​

Answer 1

Answer:

The contribution of a firm to national income is value added by it and not its value of output because value of output includes value of intermediate inputs purchased from other firms. Thus, value added is firm's contribution to the flow of final goods and services produced by it during a period of account.