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Question
Distinguish between ‘Value of Output’ and ‘Value Added’.
Solution
Value of output is the estimated money value of all the goods and services, inclusive of change in stock and production for self-consumption. Whereas, value added is the excess of the value of output over the value of intermediate consumption.
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RELATED QUESTIONS
Find net value added at factor cost:
(Rs lakh)
(i) Durable use producer goods with a life span of 10 years 10
(ii) Single use producer goods 5
iii) Sale 20
(iv) Unsold output produced during the year 2
(v) Taxes on production 1
Explain the precautions that are taken while estimating additional income by the value-added method.
Answer the following question.
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How is microeconomics different from macroeconomics?
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Statement 2: TP can take negative values only.
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| Producer | Value of output | Intermediate Consumption |
Value Added |
| Farmer | 2,000 | - | 2,000 |
| Banker | __(i)__ | 2,000 | 2,000 |
| Retail Seller | 4,400 | (iii) | 400 |
| Total | __(ii)__ | 6,000 | __(iv)__ |
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Goods supplied free of cost by the government.
