Q13 of 20 Page 2

Calculate the net value added at the market price of a firm:

GVAMP = Gross output – intermediate consumption


= (sales + change in stock) – I.T


= {500 + (-25)} – 300


= 175


NVAMP = GVAMP – Dep


= 175 – 20


= 155 (Answer)


More from this chapter

All 20 →
11

What is national disposable income and state its formula?

 12

Define externalities. Explain positive and negative externalities with examples.

 14

Explain with an example, factor income to abroad and factor income from abroad.

 15

Distinguish between domestic and national product. When can domestic product be greater than the national product?