Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

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
Options:

500

600

400

800

Correct Answer:

400

Explanation:

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