Calculate Net value added at factor cost ( NVAFC) from the given set of data:
| Value of output | 500 |
| Intermediate consumption | 100 |
| Indirect taxes | 30 |
| Depreciation | 20 |
| Subsidies | 50 |
| Purchase of machinery | 50 |
Answer & explanation
Correct answer: option 3
The correct answer is Option 3: 400
GDPMP = GVOMP - Intermediate consumption
= 500 - 100
NVAFC / NDPFC = GDPMP - depreciation - NIT
= 400 - 20 - (30-50)
= 400 - 20 + 20
= 400