Practice The Product Or Value Added Method (2.2.1)

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9 questions

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6 sample questions

Question 1.
Define value added.
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Think about what is produced after deducting costs.
Question 2.
What is the definition of intermediate goods?
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Consider what ingredients would be in a recipe.
3Question 3.
What does value added refer to?
- Total sales of a firm
- Net contribution to production
- Costs incurred in production
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Consider the contribution after subtracting costs.
4Question 4.
True or False: Gross Value Added accounts for depreciation.
- True
- False
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Think about what 'gross' means.
Question 5.
A company produces Rs 1000 worth of products, with Rs 300 in intermediate goods. They expect their capital to depreciate by Rs 50 over the year. Calculate both GVA and NVA.
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Remember to follow the step for both GVA and NVA calculations.
Question 6.
Consider a bakery with original inventory of Rs 200. They produce Rs 800 worth of goods but sell Rs 600. What is their change in inventory?
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Calculate the difference between production and sales to understand how inventory shifts.

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