In the identity: Gross value added of a firm = Value of sales + Value of change in inventories − Value of intermediate goods used, the value of sales of the firm includes sales to:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → domestic buyers as well as buyers abroad
A firm’s sales include sales at home and sales abroad. Sales to buyers abroad are its exports.
NCERT (2026-27): “2.2.1 The Product or Value Added Method It is worth noting that the sales by the firm includes sales not only to domestic buyers but also to buyers abroad (the latter is termed as exports). It is also to be noted that all the above mentioned variables are flow variables. Generally these are measured on an annual basis. Hence they measure value of the flows per year. …” |