Question

Calculate the value added in the primary sector from the following data. Ignore units.

$\begin{array}{cc}\text{Value of output in primary sector}& 800\\ \text{Value of output in secondary sector}& 200\\ \text{Value of output in tertiary sector}& 300\\ \text{Value of raw materials purchased by primary sector}& 400\\ \text{Value of raw materials purchased by secondary sector}& 100\\ \text{Value of raw materials purchased by tertiary sector}& 50\end{array}$

• A. 400
• B. 800
• C. 750
• D. 1,300

Answer 1

The correct option is A

400

Value added = Value of output in primary sector - Value of raw materials purchased by primary sector
= 800 - 400
= 400