From the following data, calculate Net Value Added at Factor Cost (\NVA_\FC): S.No. Particulars Amount in (₹Crores) (i) Price per unit of output 20 (ii) Output sold (units) 1250 units (iii) Excise duty 5,000 (iv) Consumption of fixed capital 1,000 (v) Change in stock (-)500 (vi) Single use producer goods 6,000

CBSE 2022 Class 12 Economics Outside Delhi Set 1 (Term 2)

Question : 15 of 19

Marks: +1, -0

From the following data, calculate Net Value Added at Factor Cost

(\NVA_\FC):

S.No.	Particulars	Amount in (₹Crores)
(i)	Price per unit of output	20
(ii)	Output sold (units)	1250 units
(iii)	Excise duty	5,000
(iv)	Consumption of fixed capital	1,000
(v)	Change in stock	(-)500
(vi)	Single use producer goods	6,000

Solution:

(a) (i) GDP at MP = Value of Production - Intermediate Consumption

\;=24,500-6,000 \;\text " crores "\;

\;=18,500 \;\text " crores "\;

{\NDP}

{\FC}= {\GDP}_{ {\MP}}-

Consumption of fixed capital-Net indirect taxes

=18,500-1,000-5,000

crores

=12,500

crores
Working Notes:
Single use producer goods = Intermediate consumption
Net Indirect Taxes

=

Indirect taxes - subsidy

=5,000-0=5,000 \;\text " crores "\;

Excise duty is an indirect tax.
Value of Production

=

price

x

quantity + change in stock

\;=20 × 1250+-500

\;=25,000-500 \;\text " crores "\;

\;=24,500 \;\text " crores "\;

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