Question : In an economy, the value added at different stages of production is as follows (in INR):
Stage 1: INR 800,000
Stage 2: INR 600,000
Stage 3: INR 400,000
If the total value of intermediate consumption is INR 300,000, what is the value of final goods produced in the economy?
Option 1: INR 1,300,000
Option 2: INR 1,400,000
Option 3: INR 1,500,000
Option 4: INR 1,600,000
Correct Answer: INR 1,500,000
Solution : The correct answer is (c) INR 1,500,000
Total value of intermediate consumption: INR 300,000
To find the value of final goods, we subtract the total value of intermediate consumption from the sum of the value added at each stage:
Value of final goods = (Stage 1 + Stage 2 + Stage 3) - Total value of intermediate consumption
Value of final goods = (INR 800,000 + INR 600,000 + INR 400,000) - INR 300,000
Value of final goods = INR 1,800,000 - INR 300,000
Value of final goods = INR 1,500,000
Therefore, the value of final goods produced in the economy is INR 1,500,000.
Question : The value added at different stages of production in an economy is as follows (in INR):
Stage 1: INR 400,000
Stage 2: INR 300,000
Stage 3: INR 200,000
If the total value of intermediate consumption is INR 250,000, what is the value of final
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Question : A company produces goods worth INR 1,000,000 and incurs intermediate consumption of INR 300,000. It pays wages of INR 200,000 and earns profits of INR 100,000. What is the value added by the company?
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Question : The value added of a firm is calculated as___________.
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