Question

Calculate net value added at factor cost from the following:
(i) Net factor income from abroad-30
(ii) Sales-3500
(ii) Purchase of intermediate goods-2000
(iv) Consumption of fixed capital-500
(v) Exports-400
(vi) Indirect taxes-350
(vii) Change in stock-50​

Answer 1

Answer:

GVAmp = Value of output - Intermediate consumption

= Sales + ∆stock - IC

= 3500 + 50 - 2000

= 3550 - 2000

= 1550

NVAfc = GVAmp - Depreciation - NIT

= 1550 - 500 - 350

= 1050 - 350

= 700