CBSE 2016 Class 12 Economics Delhi Set-1

Question : 6

Total: 18

Find net value added at factor cost :
(₹ Lakh)

(i)	Durable use producer goods with a life span of 10 years	10
(ii)	Single use producer goods	5
(iii)	Sales	20
(iv)	Unsold output produced during the year	2
(v)	Taxes on production	1

Solution:

Value of output = sales + change in stock
=20+2=22‌ lakh. ‌
Gross value added at market price = value of output-intermediate consumption (single use producer goods)
=22−5=17‌ lakh. ‌
Depreciation =( Cost of producers good ÷ no. of life in years)
=(10÷10)=1
Net Indirect taxes = Taxes on production - subsidy
=1−0=1
Net value added at FC=GVA‌mp− Depreciation - Net indirect taxes
‌=17−1−1
‌=₹15‌ lakhs. ‌

Go to Question:

Prev Question

Next Question