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asked in Economics by (30.1k points)

From the data given below, find out the following: 

(a) value of output at market prices, 

(b) Gross value added at market prices, 

(c) Net value added at market prices, 

(d) Net value added at factor cost.

HeadsAmount
1. Opening stock200
2. Closing stock400
3. Purchase of raw material700 
4. Sales1600
5. Corporation tax100
6. Undistributed profits50
7. Dividend50
8. Rent150
9. Interest100
10. Depreciation200
11. Indirect tax150 
12. Subsidies50
13. Wages and salaries 350

1 Answer

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answered by (60.2k points)
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Best answer

(a) Value of output at market prices:

(b) Gross value added at market prices = value of output – intermediate consumption 

= 1800 – 700 = 1100 

(c) Net value added at market prices = gross value added at market prices – depreciation 

= 1100 – 200 = 900 

(d) Net value added at factor cost = net value added at market prices – net indirect taxes (indirect taxes - subsidies) 

= 900 – (150-50) = 800

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