Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
72.3k views
in Economics by (15 points)
edited by

Calculate Net Value Added at Factor Cost, from the following data

(i) Consumption of fixed Capital = 600

(ii) Import Duty = 400

(iii) Output Sold = 2000

(iv) Price Per Unit of Output = 10

(v) Net Change in Stocks = (-) 50

(vi) Intermediate Cost = 10000

(vii) Subsidy = 500

Please log in or register to answer this question.

1 Answer

0 votes
by (323k points)

Sales = Output Sold x Price Per Unit =2000 x 10 = Rs 20000. 

Now, Value of Output = Sales + Change in Stocks = 20000 + (-50) = Rs 19950. 

$GV{{A}{MJ}}$ = Value of Output - Intermediate Cost = Rs (19950 - 10000) = Rs 9950. 

Hence, NVAFC = $GV{{A}{MP}}$ - Consumption of Fixed Capital - Net Indirect Tax (Import duty - Subsidy) = 9950 -600 - (400 - 500)

(Where Net Indirect Tax = Import duty - Subsidies) $NV{{A}{FC}}$= Rs 19450.

No related questions found

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...