Question

Firm A sells flour to firm B for ₹ 100/- Firm B sells biscuits to the wholesaler C for ₹ 160/- and Firm C sells biscuits to consumers for ₹ 200/-. Hence, the gross value added is ______.

Options

• ₹ 460/-

• ₹ 305/-

• ₹ 244/-

• ₹ 200/-

Answer 1

Firm A sells flour to firm B for ₹ 100/- Firm B sells biscuits to the wholesaler C for ₹ 160/- and Firm C sells biscuits to consumers for ₹ 200/-. Hence, the gross value added is ₹ 200/-.

Explanation:

Gross value is the total value of goods and services produced in an economy. In the above case, the total value of biscuits to the consumers is ₹ 200.