Suppose in an economy there are only two firms A and B. Calculate Gross Domestic Product at Market Price from the given table.
|
Items |
Firm A |
Firm B |
|
Sales |
50Cr |
200Cr |
|
Change in stock |
+20Cr |
-30Cr |
|
Intermediate Consumption |
0 |
100Cr |
Answer & explanation
Correct answer: option 2
The correct answer is option B: ₹ 140 Cr
Output (Sales + Change in Stock) for each firm:
- Firm A: Output = Sales + Change in Stock = 50 Cr + 20 Cr = 70 Cr
- Firm B: Output = Sales + Change in Stock = 200 Cr - 30 Cr = 170 Cr
Value added = Output- Intermediate Consumption
Value added by Firm A =70-0=70 Cr
Value added by Firm B =170-100=70 Cr
GDP at MP= Value added by Firm A + Value added by Firm B
= 70+170
=Rs 140 Cr