Question

Calculate Gross value added at factor cost:
$$\begin{array}{cc}\text{(a) Sales}& 800\\ \text{(b) Opening Stock}& 40\\ \text{(c) Closing Stock}& 30\\ \text{(d) Subsidies}& 50\\ \text{(e) Purchase of intermediate product}& 400\\ \text{(f) Purchase of machinery}& 200\end{array}$$

Answer 1

Value of Output = Sales + Change in Stock
$=800+(30-40)=790GV{A}_{mp}=\text{Value of output - Intermediate consumption}=790-400=390GV{A}_{fc}=GV{A}_{mp}-NIT=390-(0-50)=440$