Question : The value added at different stages of production in an economy is as follows (in INR):
Stage 1: INR 400,000
Stage 2: INR 300,000
Stage 3: INR 200,000
If the total value of intermediate consumption is INR 250,000, what is the value of final goods produced in the economy?
Option 1: INR 650,000
Option 2: INR 750,000
Option 3: INR 850,000
Option 4: INR 950,000
Correct Answer: INR 650,000
Solution : The correct answer is (a) INR 650,000
To find the value of final goods produced in the economy, we need to subtract the total value of intermediate consumption from the sum of the value added at each stage.
Total value of intermediate consumption: INR 250,000
To find the value of final goods, we subtract the total value of intermediate consumption from the sum of the value added at each stage:
Value of final goods = (Stage 1 + Stage 2 + Stage 3) - Total value of intermediate consumption
Value of final goods = (INR 400,000 + INR 300,000 + INR 200,000) - INR 250,000
Value of final goods = INR 900,000 - INR 250,000
Value of final goods = INR 650,000
Therefore, the value of final goods produced in the economy is INR 650,000.
Question : In an economy, the value added at different stages of production is as follows (in INR):
Stage 1: INR 800,000
Stage 2: INR 600,000
Stage 3: INR 400,000
If the total value of intermediate consumption is INR 300,000, what is the value of final goods produced in the economy?
Option 1: INR 1,300,000
Option 2: INR 1,400,000
Option 3: INR 1,500,000
Option 4: INR 1,600,000
Question : A company produces goods worth INR 1,000,000 and incurs intermediate consumption of INR 300,000. It pays wages of INR 200,000 and earns profits of INR 100,000. What is the value added by the company?
Option 1: INR 300,000
Option 2: INR 500,000
Option 3: INR 700,000
Option 4: INR 900,000
Question : A company produces goods worth INR 1,500,000. It incurs intermediate consumption of INR 500,000 and pays wages of INR 300,000. The company also receives indirect taxes of INR 200,000 and subsidies of INR 100,000. What is the value added by the company?
Option 1: INR 400,000
Option 3: INR 800,000
Option 4: INR 700,000
Question : A company produces goods worth INR 2,000,000 and incurs intermediate consumption of INR 800,000. It pays wages of INR 500,000 and earns profits of INR 300,000. Additionally, the company pays indirect taxes of INR 200,000. What is the value added by the company?
Option 1: INR 500,000
Option 2: INR 700,000
Option 3: INR 900,000
Option 4: INR 1,100,000
Question : The value added of a firm is calculated as___________.
Option 1: value of production of the firm - value of intermediate goods used by the firm.
Option 2: value of production of the firm + value of capital goods used by the firm.
Option 3: value of production of the firm / value of intermediate goods used by the firm.
Option 4: value of production of the firm + value of intermediate goods used by the firm.
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