If GDP = 600, then Intermediate consumption of firm B is : |
100 700 200 500 |
100 |
The correct answer is option (1) : 100 - Firm A: Sales : 200, Intermediate Consumption : 0 - Firm B :- Sales : 500, Intermediate Consumption : ? For Firm A: Value Added (A) = Sales (A) - Intermediate Consumption (A) = 200- 0 = 200 The Gross Domestic Product (GDP) is given as 600. GDP is calculated by summing up the value added at each stage of production. The value added is the difference between sales and intermediate consumption. GDP = Value Added (A) + Value Added (B) 600 = 200 + Value Added (B) Value Added (B)= 400 Now, For Firm B : Value Added (B) = Sales (B) - Intermediate Consumption (B) 400 = 500 - Intermediate Consumption (B) Intermediate Consumption (B) = 500-400 = 100 |