Question

In an economy, the following transactions take place: a. A sells goods of Rs. 20 crores to B, Rs. 30 crores to C, Rs. 40 Crores to household and goods worth Rs. 10 crores remain unsold. Valué of inputs of firm A is assumed to be zero

Answer 1

Explanation:

In an economuy, the following transactions take place : <br>

A sells goods of Rs. 20 crores to B, Rs. 30 crores to C, Rs. 40 crores to households and goods worth Rs. 10 crores remain unsold. Value of inputs of firm A is assumed to be zero. <br>

B sells his output worth Rs. 40 crores to C, Rs. 60 crores to D and Rs. 50 crores to final consumption. <br>

C sells his output worth Rs. 100 crores to D, Rs. 100 crores to households and exports worth Rs. 100 crores. <br>

D sells Rs. 300 crores to households and Rs. 100 crores to government. <br> Calculate : (i) Value Added by each firm, (ii) Total Value Added , (iii) Total Consumption Expenditure.