Calculate the value of final goods
(which will become part of the GDP) in the case
given below. A cotton farmer
et sells his weekly output of cotton to a weaver for
5000. The weaver Weaves cloth out of this and sells it to the cloth trader for
*6500. The trader sells part of this cloth to a shirt maker for 5000 and the
remaining cloth to a retailer for 3000. The shirt maker makes 60 shirts, each
selling for 150. The cloth retailer sells his cloth to the final customers for 4000.
Answers
Explanation
Value added by farmer=₹5000
Value added by Weaver =₹6500-₹5000=₹1500
Value added by trader =₹5000+₹3000-₹6500=₹1500
Value added by retailer=₹4000-₹3000='1000
Value added by shirt maker=60×150-₹5000=₹4000
Total value by final goods=Value added by all
(₹5000+₹1500+₹1500+₹1000+₹4000)=₹13000
This is same value as the final goods that is
₹4000 for clothes and ₹9000 for shirts
Answer:
Value added by the farmer = Rs 5,000
Value added by the weaver
= Rs 6,500 -Rs 5,000 = Rs 1,500
Value added by the trader
= Rs 5,000+ Rs 3,000- Rs 6,500 = Rs 1,500
Value added by the retailer
= Rs 4,000 - Rs 3,000 = Rs 1,000
Value added by the shirt maker
= 60 x 150-Rs 5,000 = Rs 4,000
Total value of final goods = value added by all
=Rs (5,000 +1,500 +1,500 + 1,000 + 4,000) = Rs 13,000
This is the same value as the final goods, i.e. Rs 4,000 for the cloth and Rs 9,000 for the shirts.
Explanation:
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