Question

Calculate the value of total output 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. 750
• C. 1,000
• D. 1,300

Answer 1

The correct option is D

1,300

The value of output is simply the sum of the values of output in the different sectors. This gives us the total output. It is important to note here that the question asks for the value of output, and not value added, so we don’t use the raw material purchase anywhere here.