Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

Distribution of GDP's for Firms A and B are given:

 

Firm A (₹)

Firm B (₹)

Sales

50

200

Intermediate Consumption

10

50

Find the value added of firm A.

Options:

₹50

₹10

₹40

₹60

Correct Answer:

₹40

Explanation:

The correct answer is Option (3) → ₹40

To find the value added for Firm A, we use the formula:

Value Added=Sales−Intermediate

For Firm A:

  • Sales = ₹50
  • Intermediate Consumption = ₹10

So,

Value Added=₹50−₹10

                   =₹40