Question. Calculate net value added at factor Cost from the
following data :-
ITEMS. (RS. IN LAKES).
(i) Sale. 800.
(ii) import of material. 500
(iii) subsides 50
(iv) change in stock. 40
(v) purchase of raw material from domestic market 450
(vi) wages and salaries. 200
(vii) consumption of fixed capital. 60
Answers
Answer:
12th
Economics
Determination of Income and Employment
Aggregate Demand
Find net value added at fac...
ECONOMICS
Find net value added at factor cost :
(Rs. Lakh)
Durable use producer goods with a life span of 10 years 10
Single use producer goods 5
Sales 20
Unsold output produced during the year 2
Taxes on production 1
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ANSWER
Value of output = Sales +Δ in Stock
⟹ Value of Output =20+2
⟹ Value of Output =Rs.22 lakhs
Gross Value added at MP = Value of Output − Intermediate Consumption
Gross Value added at MP =22−5=Rs.17 lakhs
NVA
FC
=GVA
MP
− Depreciation − Net Indirect Tax
⟹NVA
FC
=17−(
No. of useful life in years
Cost of producer goods
)−(Indirect Tax - Subsidy)
⟹NVA
FC
=17−(
10
10lakh
)−(1−0)
∴NVA
FC
=Rs.17−1−1=15 lakhs
Note: Here, single use producer goods are considered as raw materials that were used in the production process.