Question

To arrive at the value of Gross Value Added at Market Price (GVA_MP) ______ must be added to Gross Value Added (GVA) at Basic Prices.

Options

• Product Taxes

• Net Product Taxes

• Production Taxes

• Net Production Taxes

Answer 1

To arrive at the value of Gross Value Added at Market Price (GVA_MP) Net Product Taxes must be added to Gross Value Added (GVA) at Basic Prices.

Explanation:

• To calculate Gross Value Added at Market Price (GVAMP), net product taxes (product taxes minus product subsidies) must be added to the GVA at basic prices.
• This adjustment is necessary because the market price includes taxes levied on goods and services (like GST), giving the final value of goods as seen in the market.