The net value added at factor cost of a producing unit is equal to:

Sum of factor payments

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Sum of intermediate consumption

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Sum of final consumption

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Sum of intermediate and final consumption

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Solution

The correct option is A Sum of factor payments
The net value added at factor cost of a producing unit is the national income for the whole economy as it is the net value of the output produced in an economy. Therefore, it also refers to the sum of factor payments as it is the accumulation of all factor income in the economy earned at a given point of time.

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Similar questions

Calculate intermediate consumption from the following data:

$\begin{matrix} Value of output & 400 Net value added at factor cost & 160 Depreciation & 40 Subsidy & 10 Sales tax & 30 \end{matrix}$

Calculate:

(a) GVA at MP

(b) Intermediate consumption from the following data:

$\begin{matrix} Value of output & 400 Net value added at factor cost & 160 Depreciation & 40 Subsidy & 10 Sales tax & 30 \end{matrix}$

Which industry is engaged in producing goods for intermediate or final consumption through processing of raw materials?

(a) From the following data compute net value added at factor cost:

$\begin{matrix} Items & Domestic sales & Subsidies & Purchase of raw material & Exports & Depreciation & Import of & Net in domestic market & indirect taxes In Crores & 2500 & 40 & 500 & 200 & 100 & 600 & 60 \end{matrix}$

(b) Intermediate goods and corporate tax are included in national income indirectly. How ?

Calculate $G N P_{m p}$

(a) By Income Method

(b) Expenditure Method

$\begin{matrix} (a) & Rent & 40 (b) & Private Final Consumption Expenditure & 800 (c) & Net Exports & 20 (d) & Interest & 60 (e) & Profit & 120 (f) & Government Final Consumption Expenditure & 200 (g) & Net Domestic Capital Formation & 100 (h) & Compensation of Employees & 800 (i) & Depreciation & 20 (j) & Net Indirect Taxes & 100 (k) & Net Factors Income From Abroad & (-) 20 \end{matrix}$

In the value added method, we subtract the intermediate consumption from total value to avoid the problem of:

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