Advertisements
Advertisements
Question
For a hypothetical economy, assuming there are only two firms (A and B) with equal Gross Value Added (GVA).
On the basis of the following data, estimate the value of Domestic Sales of Firm A:
| S. NO. | Items | Amount (in ₹ crore) |
| (i) | Value of Output of Firm B | 1,000 |
| (ii) | Purchases by Firm A from Firm B | 300 |
| (iii) | Exports by Firm A | 200 |
| (iv) | Purchases by Firm B from Firm A | 250 |
| (v) | Additions to stock of Firm A | 150 |
Numerical
Advertisements
Solution
Gross Value Added of Firm B = Value of Output of Firm B − Purchases by Firm B from Firm A
= 1,000 − 250
= ₹ 750 crore
Gross Value Added of Firm A = Gross Value Added of Firm B = ₹ 750 crore
Domestic Sales of Firm A = Gross Value Added of Firm A − Exports by Firm A − Additions to stock of Firm A + Purchases by Firm A from Firm B
= 750 − 200 − 150 + 300
= ₹ 700 crore
shaalaa.com
Is there an error in this question or solution?
