Let us say a firm produces Rs 100 worth of goods per year, Rs 20 is the value of intermediate goods used by it during the year and Rs 10 is the value of capital consumption. Calculate the Gross value added.

Rs. 80 per year.

The correct answer is Option (4) → Rs. 80 per year.

The Gross Value Added (GVA) measures the value of output produced by a firm after subtracting the value of intermediate goods used in production.

GVA=Value of Output−Value of Intermediate Consumption

Given:

• Value of output = Rs 100

• Intermediate goods = Rs 20

GVA = 100−20 = 80