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Distinguish between gross value added and net value added. - Economics

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प्रश्न

Distinguish between gross value added and net value added.

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उत्तर

  Basis Gross Value Added (GVA) Net Value Added (NVA)
1. Definition The value of output after deducting intermediate consumption but before deducting depreciation. The value of output after deducting both intermediate consumption and depreciation.
2. Formula GVA = Gross Output – Intermediate Consumption NVA = GVA – Depreciation
3. Depreciation Not deducted Deducted
4. Reflects Total new value produced, including wear and tear of capital assets. Actual value created after accounting for loss of capital assets.
5. Uses Used for estimating Gross Domestic Product (GDP) and Gross National Product (GNP). Used for estimating Net Domestic Product (NDP) and Net National Product (NNP).
6. Example Application Used in calculating Gross Domestic Product (GDP). Used in calculating Net Domestic Product (NDP) or NNP.
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पाठ 20: Methods of Measuring National Income - TEST YOURSELF QUESTIONS [पृष्ठ ४०८]

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फ्रँक Economics [English] Class 12 ISC
पाठ 20 Methods of Measuring National Income
TEST YOURSELF QUESTIONS | Q 7. | पृष्ठ ४०८
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